Utilities: SRE: Thanks for the alert, Grommit. Maybe it's time I sell down the position. The utility sector still doing very well as people go for the necessary service they provide, their increasing dividends and/or their relatively large dividend yields (compared to some gov't bonds). And as the these stocks continue to move up, it may just reinforce the idea for yield hounds that it was/is a good sector to be buying into.
I'm with EKS though -- it seems to me p/e's of 15 for gas/electric utility companies.are too high -- that's growth stock territory (for me). Otoh, maybe that's the new normal now. Water utilities have sold for p/e's well over 15 for some time -- years.
Currently my domestic (USA) gas/elect ute's are: EXC, PPL, GAS, ATO, SO(SO being another with a Yahoo forward p/e over 15) , UGI, and SRE. If you (or anyone else here) has ideas for less risky utes than SRE and that have lower p/e, I'd be interested in knowing more. |
