When Federal Reserve Chairman Ben Bernanke announced on Sept. 13 that low interest rates will prevail well into the future, every utility stock shareholder should have cheered with approval --and the roar of buy orders being placed should have been deafening. Utility company shares have long had a reputation as "widow and orphan stocks." Considered to be boring with a predictable dividend income flow, they're often perceived to be best suited for only the most risk-averse of investors.
This economic model should continue well into the future. Global central bankers, with Bernanke at the helm, have pledged to keep interest rates low for the long term. Fuel prices are falling because of an anemic recovery in the United States, slumping economic growth in China and India, and Europe's slide back into a recession. All of these factors combine to make utility stocks very appealing for both the near term and the long term, as the superior income and capital gains of these stocks power a higher total return.
Source: Motley Fool
Related Articles:
- Utilities Stock Funds Were 2011's Bright Star
- 2011 Dividend Increases Nearly Doubled, and 7 Dividend Stocks that Led the Way
- 6 Dividend Stocks For The New Year
- Bonds Look Morbid When Compared To These Dividend Stocks
- The 2012 Dividend Aristocrats
Ben Bernanke And Utility Stocks
Posted by D4L | Saturday, November 10, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
When many investors think about tech stocks, they often think first about high-growth names that come with outsized risk -- not mature, divi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.