05-31-2021, 11:53 AM
Righty.
Had some very difficult moments deciding on the utility. I looked at those traditional utes and XEL looked ok but I'm not really feeling it at these prices. Surely not a bad buy here though in indeed would be much better at a slightly higher yield. ATCO from Canada (not the US "atco" ticker) has great yield, pretty limited growth but I would have been fine with that... but yeah tax issues come up so no Canadian ones.
Then I looked at different ETFs. Can't get XLU, and didn't really find anything else that would fit great.
Looked at water utilities... looked at all sorts of infra companies. There are a lot of good companies there but they are all overvalued.
Ended up deciding on NSC for the "ute/infra" slot of this portfolio. Expensive? Sure. But with inflation creeping up, the economy getting ready to run on full steam etc I think they will do well for years to come. 10% div increases are probably guaranteed for the next few years at least. I might not go with NSC for a shorter term trade since it is super expensive but I'm guessing that I'm looking at an investment horizon between 20 and 40 years for this portfolio so it might be worth it to pay a bit extra for quality.
Had some very difficult moments deciding on the utility. I looked at those traditional utes and XEL looked ok but I'm not really feeling it at these prices. Surely not a bad buy here though in indeed would be much better at a slightly higher yield. ATCO from Canada (not the US "atco" ticker) has great yield, pretty limited growth but I would have been fine with that... but yeah tax issues come up so no Canadian ones.
Then I looked at different ETFs. Can't get XLU, and didn't really find anything else that would fit great.
Looked at water utilities... looked at all sorts of infra companies. There are a lot of good companies there but they are all overvalued.
Ended up deciding on NSC for the "ute/infra" slot of this portfolio. Expensive? Sure. But with inflation creeping up, the economy getting ready to run on full steam etc I think they will do well for years to come. 10% div increases are probably guaranteed for the next few years at least. I might not go with NSC for a shorter term trade since it is super expensive but I'm guessing that I'm looking at an investment horizon between 20 and 40 years for this portfolio so it might be worth it to pay a bit extra for quality.