Introduction It is quite easy to get caught up, and quite hard to avoid getting caught up in a great bull market like the one we are currently in. However, it’s important to remind ourselves that: “everybody is a genius in a bull market.” In my experience, the hardest thing for investors to do is Read more about WEC Energy Group Inc. And NextEra Energy Inc.: My 2 Favorite Utility Companies, But I Hate Their Stocks[…]
One of the most common mistakes that I see common stock investors make is failing to formulate the important distinction between a company and its publicly traded stock. There are many great companies out there with fabulous stories surrounding their wonderful businesses. As a result, it can be very easy to fall so much in love with a great company that you can’t resist investing in the stock even when the valuation is extreme.
Introduction The S&P 500 is a large and broad index that includes 10 broad sectors and many types of individual companies. Many S&P 500 constituents pay dividends and many do not. One of the smallest sectors by weight is the Utilities Sector, comprising just over 3% of the total index, and includes 29 constituents. However, Read more about The Often Overlooked Danger When Investing In S&P 500 Utility Stocks – Part 10A[…]
Introduction To me, there’s almost nothing better than finding a great company that I truly want to own at a fair valuation, or better yet, undervalued. In the long run, it has been my experience that this usually leads to outsized future returns, especially if you buy stocks when they are undervalued at the time. Read more about Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now?[…]
This is our fourth and final installment on assessing the relative valuation of utility stocks today. Our first installment part 1 looked at utility stocks in general. In part 2 we covered utilities operating in the Western part of the United States, and in part 3 we looked at utilities operating in the Central states. This Read more about Most Eastern Utility Stocks Are Overvalued – Part 4[…]
Introduction In Part 1 of this series found here, we voiced the notion that there are two primary attributes, valuation and the rate of change of earnings growth, which prudent investors can use to forecast the potential future returns on their stocks. However, Part 1 was primarily focused on ascertaining the principles which laid the Read more about How to Know What Rate of Return to Expect from your Stocks: Part 2[…]
Anyone who had recently invested in real estate would most likely agree that the phrase “dirt cheap” carries a new and enhanced meaning today. In the same vein, we would argue that our top 25 dividend growth stocks based on the potential for five-year estimated annual total returns are dirt cheap. Consequently, we believe that Read more about The Case for Optimism: Our Top 25 Dividend Growth Stocks are Dirt Cheap[…]
Introduction Early in their careers investment professionals are taught the importance and benefit of properly diversifying their client’s portfolios. Modern Portfolio Theory (MPT), which was developed and promoted by academia, has taken diversification to the extreme. According to Modern Portfolio Theory, asset allocation is the primary determinant of future returns and in the reduction of Read more about Sell your Bonds and Gold and Buy Dividend Growth Stocks Before it is Too Late[…]