My comment was a bit of a generalization. In relative terms the competition is nothing. A tech company makes a couple bad decisions and 50%+ in market cap can vaporize in a hurry.
My favorite utility is XEL. Pre-merger it was Northern States Power. I've owned it 25 years. Purchased most of my shares at $7.50 when they had a bad year in the 90s. Market acted like they were going out a business when there was no other real power option. Every year renewables (currently wind) become a larger % of their total power generation. Solar will not be viable anytime soon in many parts of the US. I do wish it was but we aren't there yet. I don't think we disagree so much.
Back on topic I sold another slightly in the money SO Put today. Pretty much the same as going long today. If assigned my SO will cost under $43.20 per share. I am comfortable with that. Not yet convinced SO is well managed, but the dividend should be secure and you won't find 5%+ often. I am pretty convinced anyone over the age of 30 should begin searching for that utility company with great management, then add to the position when utilities are out of favor which is usually at least an annual event. Start early and allow the dividend to compound. It's nice to have a few stocks in the Port you don't have to worry about getting crushed when the markets get rough which is inevitable in all our investing lifetimes.
My favorite utility is XEL. Pre-merger it was Northern States Power. I've owned it 25 years. Purchased most of my shares at $7.50 when they had a bad year in the 90s. Market acted like they were going out a business when there was no other real power option. Every year renewables (currently wind) become a larger % of their total power generation. Solar will not be viable anytime soon in many parts of the US. I do wish it was but we aren't there yet. I don't think we disagree so much.
Back on topic I sold another slightly in the money SO Put today. Pretty much the same as going long today. If assigned my SO will cost under $43.20 per share. I am comfortable with that. Not yet convinced SO is well managed, but the dividend should be secure and you won't find 5%+ often. I am pretty convinced anyone over the age of 30 should begin searching for that utility company with great management, then add to the position when utilities are out of favor which is usually at least an annual event. Start early and allow the dividend to compound. It's nice to have a few stocks in the Port you don't have to worry about getting crushed when the markets get rough which is inevitable in all our investing lifetimes.