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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (10769)	1/15/2012 11:25:20 AM
From: Paul Senior	Read Replies (1) \| Respond to of 34328

My methodology, objectives, and/or reasoning here might be different from yours. I've no idea where to place a low-ball bid on this. Unless I change my mind by Tuesday, my order is in now for the stock at $39.75, which is above the closing price Friday. EXC looks low enough, out-of-favor enough for me... unless there's some negative forthcoming news that I'm not aware of (which could be). finance.yahoo.com Here's an article today that describes the current negative issues: seekingalpha.com "I...believe the sector(XLU)appears out of favor for the time being". If I were buying for dividend investing, to me now would be the time to buy if the sector were out of favor. Versus, If the other choice is to buy later, when the sector is in favor (and prices are bid up). I question whether the sector is out of favor. I see that other sectors seem to be doing better -- financials, materials, maybe tech and healthcare?. The relative underperformance of utilities this past month I've seen reported several times now by the talking heads on financial stations. However, I look at the utility stocks I have, and assuming they're representative of the sector, most are within a few points of their 12-mo highs. So maybe out of favor, relatively -- but not necessarily. Being the geezer that I've become, with my history of dealing with the stock market, perhaps I am stuck in some old past time period: Namely, to me a p/e of 15x is what I might want to pay for a growth stock. Not for a utility stock. Although I'm holding a number of them that are there now -- SO, EIX, D, etc., I won't commit funds to any that trade at those levels now. I guess my point is that I see utilities still very much in favor (high prices, high p/e) -- maybe almost too much in favor. While EXC doesn't have as high a p/e as 15x (assuming its earnings meet analysts' expectations) and trades at its 12-mo low, it does have its problems. I'm only going for a few shares.