Re: Utilities
Steve, each one has a different story. This is an ultra-conservative portfolio. If I make 10 trades a year in this one, that's a lot. I sold off about 1/2 my utilities holdings last April, and so this portfolio is about 40% cash. That's more than it should be, and no one should be alarmed that I think a crash is imminent. There are other reasons for this. Utilities are very good investments during poor economic times. Right now, the index is about half way through it's trading range. Neither bottom nor top. Some of these are at good prices, some have good future prospects, some are having internal problems. There is a move towards consoladation in the electric industry -- lots of buyouts and mergers going on. Some analysts think the industry will end up being like the phone system --- 10 players. None of this will happen overnight. But, they don't go out of business, either. The question that I answered was what was I holding. It was not a recommendation for any of those listed. None of these are short term plays. Some of them I'm happy with, some I'm not.
No, there is no tax deduction for the dividend. But they are a source of fairly reliable quarterly income.
Just call me Webster.
P. Webster |
