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

To: Steve Felix who wrote (13052)	11/5/2012 4:14:05 PM
From: inspbudget	Read Replies (3) \| Respond to of 34328

You're correct, the utes have been doing rather poorly of late. Would you share your opinion of why this is happening? IB

To: Steve Felix who wrote (13052)	11/5/2012 4:33:26 PM
From: chowder	Respond to of 34328

The utilities have had a terrific run the last couple of years. Try finding a quality one that is under valued. They needed a pull back. Most of the yields are right at 4% and lower. Since utilities aren't growth companies, I prefer a 5% yield or around 4.7% or 4.8%. If SO or D get back to those yields, watch the buying show up. There are others as well. I sold my EXC, took about an 18% loss. Boy, it dropped fast the last couple of days prior to my selling. I couldn't find another ute with the quality I seek, that was showing a decent yield. I had EXC with a yield over 5%, but no dividend growth. I added to OHI, a health care REIT instead. OHI has a 7.3% yield and a 5 year dividend growth rate of 9.4%, so I came out ahead income growth wise. I still want to buy another utility company. I'm going to wait for the next earnings season. We may see a sell off when some of these utes miss earnings due to the damage caused by Sandy. The run may come before earnings, I don't know, but I'm going to keep an eye open in any event. Another consideration is tomorrow's election. If Mitt were to win, we might see utilities rally in the next day or two. Again, I don't know, just trying to stay ahead of the curve.