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Author: ww4321 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75800  
Subject: anyone mainly in utility stocks? Date: 12/21/2011 4:48 PM
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for a retirement portfolio
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Author: ltangel Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69902 of 75800
Subject: Re: anyone mainly in utility stocks? Date: 12/21/2011 5:32 PM
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i like utility stocks -basics - decent return -

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69903 of 75800
Subject: Re: anyone mainly in utility stocks? Date: 12/21/2011 6:13 PM
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With interest rates so low on CDs and Treasury Bonds, the dividends paid by utilities make them attractive. Plus you have potential for the dividend to increase giving you income that tries to keep up with inflation.

But in an era of global warming, heavy dependence on coal fired power plants and uncertain future of nuclear energy, not to mention visions of green energy and deregulation of the industry--utility stocks are higher risk than they used to be.

Diversification is still a good idea. Don't put all your eggs in one basket.

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Author: unconfuseme Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69904 of 75800
Subject: Re: anyone mainly in utility stocks? Date: 12/21/2011 11:01 PM
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10%

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Author: soycapital Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69905 of 75800
Subject: Re: anyone mainly in utility stocks? Date: 12/21/2011 11:50 PM
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Consider Roger Conrad's Utility Forecaster, good investment letter, high independent ratings, good history, safe.

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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69907 of 75800
Subject: Re: anyone mainly in utility stocks? Date: 12/22/2011 9:07 AM
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Not in my retirement portfolio but in a portfolio that I use to fund a scholarship at my alma mater. Specifically SO, DUK, CNP, and a few other energy stocks and dividend growers.

JLC

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Author: BruceCM Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69912 of 75800
Subject: Re: anyone mainly in utility stocks? Date: 12/23/2011 3:35 PM
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As part of total return, utilities provide bond-like dividends and very low correlation with the broad market and low volatility. For example, XLU (a utility ETF) has an S&P 500 Beta of .43 .

For income, utilities provide very reliable dividends. Per Morningstar's stock screener, of the 231 regulated utility stocks, only 9 cut their dividend over the past 5 years. That's less than 4% during a sharp market downturn.

OTOH, using the same M* screen, 48 of these utilites (20.8%) have had an average annual dividend growth rate greater than 3% over the same period.

So I would say that for a portfolio diversifier or a source of reliable income, utilities are hard to beat.

As an income investor, 7 utilities provide about 12% of my overall income.

BruceM

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