Roaming Returns

033 - Tim's 6 Favorite Utility Stocks And Why 100s Of Others Didn't Make The Cut

February 03, 2024 Tim & Carmela Episode 33
Roaming Returns
033 - Tim's 6 Favorite Utility Stocks And Why 100s Of Others Didn't Make The Cut
Show Notes

Don't make the mistake of passing up on Utility stocks. Utilities aren't flashy but they're essential and more secure than most other sectors, which makes them a great portfolio hedge during recessions. 

It may look like Utilities have smaller dividend yields, but they increase their dividends year after year. That means the longer you hold them the higher your actual yield becomes. 

Slow and steady is usually considered boring, but that's how you win the game of investing.

What Tim looks for when he's combing Utility stocks

  • Yield
  • P/E vs industry
  • Profit margin 
  • 5 year dividend growth
  • Revenue growth
  • Payout ratio 

The tickers we discussed in this episode

  • NEE (electric) and NEP (renewable energy) 
  • BIP (electrical and natural gas) and BEP *** BIP is currently overvalued and BEP has a negative P/E. These are better Watchlist candidates then buys right now. 
  • UGI - natural gas
  • VZ - telecom but considered a utility stock
  • PBR oil and gas
  • BKH electric

A few other mentions

  • DUK
  • NFG 

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Ticker metrics change as markets and companies change, so always do your own research. The content in this podcast is based on personal experience and is for educational purposes, not financial advice. See full disclaimer here.

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