A Small and Hardy Utility
Utilities often provide investors with both a margin of safety and the chance to build income over time through stable, predictable dividend increases. For investors concerned with achieving a growing stream of income - utilities are often very popular. However, in the current economic environment where investors are receiving low, no or even negative total returns by investing in government treasuries - there is a risk of the asset class becoming "too popular."
As many investors have invested in common shares in utilities as a proxy for a "super safe" investment, the increased demand for the asset both drives up the price and drives down yields - making conventional wisdom increasingly suspect and thus increasing...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|