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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (34504)	5/16/2009 7:44:55 PM
From: E_K_S	Respond to of 78740

Spekulatius - My concern are those regulated utilities that have limits as to how often and how much they can raise prices. There is usually a very formal procedure they must follow that may include limits on annual increases. Don't expect dividends to be increased during an inflationary cycle. Several utilities are limited as to how much they can pay out in dividends. I guess holding a bond might be worse especially if you are locked into a low rate. The NG pipeline distribution companies might be a bit better off. Some of their operations are not regulated and those that are generally have their ROI fixed over some period that allows them a reasonable return on their capital investments. I guess there is some amount of price protection with owning a (regulated) utility. It is certainly better than holding cash but I am not so sure that it is (or will be) a good inflation hedge. EKS