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


To: chowder who wrote (33630)6/17/2021 8:19:28 AM
From: E_K_S1 Recommendation

Recommended By
Graustus

  Respond to of 34328
 
Have not looked at the utility CEF's, yield about twice that than for the individual stocks. You do get nice long term capital gain by holding the individual stocks. That's a good list you have.

The key, just stay diversified and/or use a mutual fund/CEF to get your exposure. Make sure funds and/or CEFs are liquid. FWIW, in a taxable account it's easier to control taxable events by selling individual lots if/when necessary.



To: chowder who wrote (33630)6/17/2021 10:11:09 AM
From: camroc325  Read Replies (1) | Respond to of 34328
 
IIRC, you posted awhile ago about the utility sector being disrupted in the not too distant future. Does this possibility still concern you?



To: chowder who wrote (33630)6/25/2021 2:39:35 PM
From: Jacob Snyder  Respond to of 34328
 
Re: utilities:

Looking at the LT chart of XLU, it took 4 1/2 years to regain previous highs, after the 2002 and 2008 recessions. Much less with the 2020 downturn, but that is an outlier. So, utilities do not offer recession protection. Other than cash, and maybe gold (if the recession is caused by inflation), what is there? XLP does not decline as much as XLU.

In non-recession years, XLU had 12-month periods of flat-to-down:

Mid-2005 to mid-2006
2015
2018

Question: was that random volatility, or is there some pattern I am not seeing? Any cause you are aware of?

Otherwise, prices moved steadily up with low volatility.