08-18-2015, 10:32 AM
(08-17-2015, 11:30 PM)Dividend Watcher Wrote:(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.
I generally agree about utilities, as they have gone back up now after the earlier selloff. I'm not seeing much for bargains in the sector. Oil & Gas and industrial stocks are probably the best bet for cheap stocks right now.