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Strategies & Market Trends : Value Investing

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To: NikhilJog who wrote (49254)8/30/2012 10:02:03 PM
From: Paul Senior  Read Replies (1) of 78816
 
Utility stocks: Great performers again this year. Perhaps over-owned now, given their relatively high prices (p/e's). Otoh - why not a case for the high prices? -- There's growth in dividends, yields better than some gov't bonds, not much foreign exposure with most. And as regards volatility and people upset with so much of it, utilities offer very low beta's.

If tax rate on div's goes up, I guess I could see sell off in ute's. Otoh, maybe not. If tax rate does go up, I assume it would be on most or all dividend classes, so where would dividend-hunting people go to replace their utes if they were to sell them?

As regards utility dividends, I would not be affected directly by increase in dividend taxes, because my ute's are held in a tax-deferred account.
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