My main investment strategy has always been the same. No matter what you invest in always make sure that people will need to use it on a regular basis. This is the reason why utility stocks are my favorite companies to invest in. What makes them even more attractive to me is that they pay very good dividends.
What are utility stocks?
Utilities are companies that provide services like your electricity, water, transportation services, local energy, gas, and many others. Basically this company is getting paid as long as you're turning on the lights, running your water, using your internet, or heating up your home.
Companies such as these only lose money where there is massive migration from the areas they service, increased operating costs, cuts in their dividend, or large operating failures.
Why should you invest in them?
Safety:
These companies receive revenues in every type of market cycle. Whether there is a big market boom or a big time recession these companies will make steady income.
Dividends:
For those who don't know what a dividend is....
A dividend is a quarterly payment companies pay to their shareholders.
For example: if you own 10 shares of an con ed (ED) at $82 a share and they pay a $3 dollar dividend you will get paid that $3 per share for your 10 shares. Which is $30 dollars per quarter. There are 4 quarters a year which means you're getting $120 in payments on top of the gains you're receiving from the stock.
Utility stocks tend to have the highest dividends among all companies, and tend to increase them so that they can compete with other stocks.
Population Growth:
The millennial generation is the largest generation since the baby boomers and are poised to be the most populous generation in American history. They are also beginning to move out of their parents homes, and having their own children. This means there will be increased energy usage because of the growing number of households. Many of the nations large cities will benefit the most.
Technology:
The more we rely on technology, the increased amount of electricity usage we will have. Electric cars? That's a win for electric utility stocks.
Some Utility stocks:
NGG (National Grid)
ED (Con Edison)
PPL (PPL Corporation)
Duke Energy (DUK)
Take a look into those stocks and for those who are new to the stock game I have a blog post for you to learn how to invest in the easiest way possible. Click------> here
I hope this helps you build our your current stock portfolio. If you ever need any help or want a custom portfolio built just for you, shoot me an email we can discuss my services.
Keep stackin’ that paper y’all,
CJB