In The Sunshine State
Due to the low interest rate environment that is expected to persist for the foreseeable future, many investors have invested in common shares of utilities as a proxy for a "super safe" investment that treasuries once represented. While the reasoning behind this decision is logical given the essential nature of the service that utilities provide, outsized demand for the asset class can pose a threat to investors due an unjustified appreciation in share prices. This rise in share price can eventually lead to both lower dividend yields and unacceptable volatility, two things which are unacceptable for conservative investors.
While it has become more difficult to find acceptable companies in the utility space over the past year,...
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