Even Utility Stocks Have Risks
Utility stocks were once the domain of widows and orphans. Investment decisions were straightforward: Buy a few good utility stocks, live off their dividends and forget about the underlying companies. After all, utilities managed themselves, and dividends were assured.
Those days are over. Over the last several months, three important trends emerged, which changed how investors view and manage their utility stocks. The first trend has been addressed by my Real Money colleague Roger Arnold. In recent articles, Arnold has been warning about falling yields for U.S. Treasury bills, notes and bonds. Yields on bills fell below 1%, to 0.16%, and notes pay only 0.20% for two-year maturities and 1.44% for 10-year maturities. These rates are unprecedented, and they continue to fall....648 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.