Electric Utility. Decided I like SO. Size, customer base, geographical diversity. Dividend yield which is now increased for the eighth straight year (about 5.9% yield). I can't see myself ever paying a 15 p/e for a utility (exception: water utilities), and even now with a p/e of 12-13, that is to me, uncomfortably high (almost growth-stockish). OTOH though, p/bk for SO is 1.7, and the stock over the past ten years has mostly traded over 2x book. Book value generally increasing only very slowly, if at all (as is typical with many utilities).
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This stock, similar to many utilities I presume, trades in a narrow band. Although the stock is down now in these troubled times, it hasn't fallen as much as so many other stocks. And if/when the market improves, I won't expect there be that much of a rise with SO either (I mean within the next few years. Over the very long haul this stock has moved up and may continue to do so: finance.yahoo.com
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Therefore, to have a decent capital gain with shares bought now, I figure I will want enter with at least 1/2 position as a starter. Which I have now done.
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