10-08-2022, 01:04 PM
(10-08-2022, 03:21 AM)lucas03 Wrote:The non-helpful answer is decades of following them with interest, when I was too young for them to interest me but they did. I have an 11 bagger in XEL. At least before the correction so maybe a 9.5 bagger today lol.Quote:I added more WEC and XEL today. I say I am done with utilities We'll see. Added quite a few single shares today but nothing too serious.
based on what do you pick regulated electric stocks? I sold NEE recently as part of broker migration, and am thinking if I should pick something of lower valuation than NEE. Like AEP or XEL.
The better answer to our question is this....
1. Most of business regulated.
2. A sane transition to renewables. (XEL and WEC going on 20 years of gradual transition)
3. Consistent 5-7% growth. I have zero interest in stodgy UTEs with a 1% higher dividend.
4. ROCK solid management that does what they say they will do. Invest an hour in a WEC earnings call audio and you wil understand.
5. Regulatory jurisdiction that is cooperative
6. Dividend growth that reliably matches business growth.
Thanks to Eric I made a lot of money on NEE when the growth was amazing. Their growth is no longer amazing so not worth the valuation risk. They grow no faster than the other top 5 now but some of the premium is still there.