08-17-2015, 11:30 PM
(08-17-2015, 09:07 PM)pyfish Wrote: Actually kinda hesitant to get into utilities because I have a hard time understanding how they can sustain good growth in the future. I do admit that I picked a lot of high yield stocks before saying hmmm this is strange there might be something off with the strategy.
I'd hold off on utilities for now. Few utes are what I would consider in the "good growth" category for a utility; maybe WEC, NEE and D right now for some of the changes they're implementing. Yes, they dipped in the last few months but they were pretty pricey through the winter in my opinion. The ones I watch were starting to get close to fair value the last couple months (and I nibbled a little) but in the last couple weeks they seem to have started climbing again to levels I'd stay away from.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan