SAM: You don't seem to own any individual utility stocks yet.
If starting out looking to buy individual utility stocks, I'd start by considering shares of my local gas/water/electric utility companies. As I've mentioned before, by going local a person would have local news available to keep tabs on the company (companies). Plus, I suspect there's some satisfaction in getting a quarterly dividend check FROM them after having to write THEM a check every month (or otherwise somehow paying them).
Alternatively,
it seems to me most USA gas and/or electric utility stocks are correlated -- they move up together (mostly) and down together. Today for example I don't see one that is not green (up). Some will move up more than others percentage-wise and some will sport a higher dividend yield than others. It's almost though - almost - as if you just picked any couple/three of gas and/or electric, and they'll do just as well as any others. Having that perception or attitude, I'd just go for a few that are trading closer to their yearly lows, rather than their highs. Three to look at maybe, might be POR, CPK, PPL. (I have positions in these, as well as several -- many -- others.)
My favorite way to play lp's is through the Tortoise funds. Specifically, TYN, TPZ. Perhaps you might already be covered well-enough though if, as you say, you hold the Alerian MLP Index ETN (AMJ).
My most recent individual new mlp buy is BBEP. I bought because I like the 10% distribution, and I hope it holds up.
For water utilities --- these don't get too much attention here, but they are utilities with good characteristics for ltb&h investors - my fav. is AWK. I continue to add to my position if/as the stock falls. I consider it a value stock (jmo) because it trades under its stated book value, and other water utilities (that I'm familiar with) do not.
I also like European utilities. They're beat down possibly because of worries over the European economy and/or the possible breakdown of the Euro. I favor Italian-based ENLAY.pk and German-based EONGY.pk. I hold positions in these, and am intending to add if/as the stocks drop on no adverse news. I mention these, but I won't recommend these for you (or anyone else). Because, even though they're giant utilities with global operations, these two stocks can be volatile and the companies maybe even in a dangerous situation, given the presumed overextended European economy and/or currency.
Fwiw, I have iShares S&P Global Utilities (JXI) on my watch list. For some reason, I've never been able to get myself up to either buy it or dismiss it.
Good luck in your search. |
