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  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    S,

    Not a stupid question at all. KMI is a C-corp now, so no withholding tax on its dividend to Canadian investors buying it in the RRSP.

    Cheers,
    C
    May 31, 2015. 03:08 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    G0-4-it,

    "Dollar cost avg. into UNP would be a wise move." -- We're in agreement here.

    "Retirement is down the road for me, so want more growth" -- Where are you looking for growth today?

    Canadian
    May 31, 2015. 02:42 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Apoplectic, I welcome your alternative view, as it adds colour to the discussion.

    Actually the XLU only dipped ~10% from the 52-week high. The 15-20% dip is in the utility finalists, listed under the "Buying the Utilities Dips" subheading in the article.

    ...which brings us back to your point of "During 2 previous market declines (9/2000 to 2/3003 and 10/2007 to 2/2009), I believe XLU bottomed out approximately 40-45% below the previous highs." -- So you're saying it could go down much more than now, which is possible since no one knows what happens in the future.

    "I might question why an investor in the third decade of life, conceivably blessed with a 50-year investing horizon, would allocate capital to utilities at all. I say this because there are securities other than utility stocks where the 50-year compound return would be significantly higher than utility stocks. After a 5-10 year interval the return could be negative, but I would be confident of a significant positive return over 50 years."

    I know there are higher growth alternatives out there, but their risk profiles would be different from utilities. Which makes me wonder...which are the alternative securities that you have in mind?
    May 31, 2015. 02:39 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Thanks Jim. Some new names there. And thanks for the follow!
    May 31, 2015. 02:18 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Sleuth, thanks for sharing what you know. It's good to look at historical earnings, but also important to look at future earnings estimates. FAST graphs conveniently does it for you. Out of your list of 5, just eyeing it quickly, it seems WEC and AVA has the best earnings estimates in relation to their current P/Es. And both utilities look fully valued, so interested investors might want to wait for further pullbacks.
    May 31, 2015. 02:14 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    And by the way, it's a great practice to set those "buy" targets ahead of time like you're doing, so that emotion doesn't get in the way.
    May 31, 2015. 12:19 AM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Sleuth, looks like you did some detailed research for your list, and thanks for sharing your findings.

    Here are my quick findings:
    I looked up NWN on FAST and its EPS has declined from 2010 to 2014, while its payout ratio went from 62% to 85% in that period. That said, you probably have your unique reasons of owning it.

    WEC's earnings growth history is nothing short of amazing and looks fully-valued at a closeup.

    Agree that WGL is pricey. AVA looks close to fairly valued.

    Yea, if you have 3 in the northwest, why not choose the best one from the group? But you probably have your reasons for buying them all. Perhaps you wanted blended yield and growth, or it was a matter of valuation.

    That's what's great about managing your own portfolio. You can choose which ones to add and which ones not. No one else can tell you otherwise. :)
    May 31, 2015. 12:04 AM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Knight, you're welcome. Glad it helped.
    May 30, 2015. 11:46 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    You're welcome, Riddix.
    May 30, 2015. 11:45 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Bea, as a Canadian investor, it's easy for me to buy Canadian REITs, and I do have some. There's a wide range of yields from 3.5 - 7+%.

    I'm not sure how easy or not it is for US investors to invest in them and how much interest there is. I assume at least it won't be as liquid for US investors, so I didn't think of writing about them. Plus, you also mentioned about the tax issues even in tax-deferred account.

    Anyhow, it's nice to hear a different perspective on the utilities.

    Canadian
    May 30, 2015. 11:44 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Marsdon, thanks. Utilities is essential part of many portfolios. Looks like you got a nice collection there.
    May 30, 2015. 06:53 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Gorgo, "Any opinions on this taper tantrum if we ill see more or was it done already?" -- Interest rates are still at historical lows. Any tweak higher may temporarily set high yielders back. No one knows for sure when or how much of course.
    May 30, 2015. 06:52 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    Knight,

    I'm not an index or mutual fund investor. As I said before, I like buying great companies at least at fair value. But one good thing about funds is that you diversify right away.

    And the minimum investment is $100,000? I'd think that's a big sum of money to come up with for a lot of people.

    From Google Finance, VUIAX's top 10 holdings are:
    Security Net Assets
    Duke Energy Corporation (DUK) 7.94%
    NextEra Energy Inc (NEE) 6.37%
    Dominion Resources Inc (D) 6.05%
    Southern Co (SO) 5.77%
    Exelon Corp (EXC) 4.23%
    American Electric Power Co Inc (AEP) 4.03%
    PG&E Corp (PCG) 3.64%
    Sempra Energy (SRE) 3.59%
    PPL Corp (PPL) 3.27%
    Public Service Enterprise Group Inc (PEG) 3.04%
    May 30, 2015. 06:46 PM | 1 Like Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    I got it from F.A.S.T. Graphs, which get their data from S&P Capital IQ.

    I double checked with SO's website and this is what I found.
    Its 2014 Basic EPS is 2.19, while its "Basic EPS Excluding Kemper IGCC Impacts, Leveraged Lease Restructure Charge, and MC Asset Recovery Insurance Settlements* (In Dollars)" is 2.8.

    It seems the latter number shows a smoother increasing number.

    Source: http://tinyurl.com/p9g...
    May 30, 2015. 06:40 PM | Likes Like |Link to Comment
  • The Sector Dips Portfolio: Which Utilities To Buy? [View article]
    DK1000,

    "It's practically impossible to catch a bottom price and, as you stated, dollar-cost averaging is a way to go." - We're in agreement. :)

    Thanks for your clarification,
    Canadian
    May 30, 2015. 06:33 PM | Likes Like |Link to Comment
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