Yes, have a little TEG.
I have been increasing my exposure to utilities.
Couple things going on. First. Okay, I AM a geezer I guess, so okay to sniffle well what can you expect a geezer to be buying. Utilities - geez could I get more stereotypical? -g-
OTOH, if I look at utility index vs S&P 500 index charts over many time periods - one year, five years, longer, I see that utilities outperform the S&P growth (and I believe that is not even counting the utilities' superior dividends).
Ha. So it's socially okay for people to go around comparing their performance to the S&P 500, the presumed benchmark. Nobody would ever say though, in all seriousness, can you beat the S&P utility index (or other utility index)? For somebody to beat a utility index, why that just seems so obviously easy and non-competitive. Maybe not so true in fact though.
finance.yahoo.com^GSPC
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So as is typical of me, to increase my utility weighting I am carving out a place in my portfolio for a self-managed utility "index". I've not really tried to balance one utility vs. another, e.g. to ensure I'm geographically diversified, or to assure that they are all value stocks. Rather, as I've found a stock I liked and at a price that seems reasonable, I have been initiating and/or adding. If anybody has some suggestions for adds or eliminations, please speak. I claim no expertise with utilities.
Here are all of my holdings now, in no particular order:
MIR TEG BKH EIX CNP AES AVA SO NU ALE EONGY.PK CPL SBS ELP MDU NRG UGI
finance.yahoo.com
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A few notes:
Am holding SE too. I can't quite see if that one is a utility or not.
NU has a relatively low price, and relative (to itself) low p/bk. I like it too because it's aggressive in anticipating electric vehicle demands: "Northeast Utilities Initiates Electric Vehicle Charging Infrastructure" nuwnotes1.nu.com
SO apparently is going to have an issue with emissions, CO2, coal. However with its large size (27,000 employees) and resources, I figure the stock, near a 12-mo low, with a low p/e of 10, 6.2% div. yield, is at a buy point at current price. I added a few shares today to a recent purchase.
With most of these stocks, SO for example, they're not going to be barn-burners, and I figure they've got to be held at least through the short-term (five years) for the good gains.
Now water utility stocks. That's another category that I like too. -g-
I have several stocks therein. |
