Dividend-News
Daily dividend news for investors in dividend stocks
Recent Performance Review For 6 Large-Cap, High-Yield Energy Utilities
-
Published Fri, 30 Mar 2012 08:29:24 -0400 on Seeking Alpha
Energy utilities are providers of a growing necessity, and often at government-regulated prices and with restricted competition. Because of significant government regulations, set prices and the growing need for electricity, energy utility equities are considered generally reliable, stable and somewhat predicable businesses. Further, the demand for energy is largely expected to increase as the population increases, and as the use of technology and electricity grows. The regulated nature of energy utilities makes their dividends reasonably secure, and also designates the equities as classic "widow and orphan" stocks. The relative security these utilities offer also means that the dividends and equity are unlikely to grow at a rapid pace, though utilities can outperform the broader market, and did in 2011. Generally speaking, utilities are lower risk and lower reward equities compared with the broader market. Many utilities stalled at the start of 2012, and have since underperformed the broader market. Some... Read more


