Utilities are on fire. As boring as they may be, stocks in this sector have been climbing higher and higher in 2016, thanks to one major trend: investors are desperate for yield, but they don’t want risk. With many high yielding assets coming with high risk, investors are looking for safety, and utilities are seen as a safe alternative. As U.S. Treasuries hit historical lows and corporate bond yields slide further, utilities become a huge attraction.
It’s not easy finding utility stocks with a wide moat, good dividend coverage, and limited price growth in the last year. But the market has still overlooked some true gems with strong and growing operating margins and solid dividend coverage. So which should you buy? Read on and find out: My first pick to buy is FirstEnergy Corp. (FE), a utility stock yielding 4% that is up just 4% in the last year. My second stock to buy is a natural gas pure-play: AmeriGas Partners, L.P. (APU), a limited partnership with an impressive 8% yield.
Source: InvestorPlace
Related Articles:
- Where To Find Great Dividend Stocks
- How To Manage Your Dividend Portfolio In A Downturn
- 5 Tech Stocks With A History of Growing Their Dividends
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
While these pharma stocks have steady cash flows and revenues, there’s still plenty of growth left in the tank from new drugs in development...
-
Dividend-paying stocks are like the ballast that keeps a ship from capsizing during stormy seas. They provide grounding for investors who, w...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Despite a strong year, the renewable power company has lost 20% of its value, which has pushed its dividend yield up to 7%. That lower price...
0 comments
Post a Comment
Post a Comment