Consolidated Edison, Inc.
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This Sector Looks Fully Valued
By Robert Ciura - May 13, 2013 | Tickers: ED, DUK, SO
Utilities are the classic “widow-and-orphan” stocks—meaning they are slow and steady providers of dependable income. Lately, these stocks have been anything but slow and steady. Many stocks in the sector have enjoyed huge run-ups in price over the last few years and are now sitting near multi-year highs.
Not to rain on the parade, but it’s worth noting that there is a price to be paid for such more »
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The Misleading Effects of Beta
By Rupert Hargreaves - May 13, 2013 | Tickers: BAC, ED, GIS, CB
Using beta can help an investor quickly construct a portfolio that is highly resistant or highly correlated to the general market, protecting defensive investors from negative movements in the market, or helping aggressive investors buy into stocks that will follow the market upwards.
Due to the nature of the beta calculation and the volume of data required, many investors will not calculate the figure themselves and instead look it up more »
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Are These Dividend Stocks Overvalued?
By Mark Morelli - May 2, 2013 | Tickers: T, ED, INTC, PG
My, how the tables have turned.
In the waning days of the dot.com bubble of the late 1990's and early 2000's tech stocks were considered way overpriced. Some had P/Es over 100 and drove the overall market to an incredibly high valuation.
Today a new group of stocks are considered by a number of analysts to be overpriced. Defensive and low-growth telecoms, utilities and consumer staples more »
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The Grid and the Green Energy Threat
By Wes Patoka - April 30, 2013 | Tickers: ED, DUK, MGEE, SCTY
Utility companies have traditionally been the only way for a consumer to join the 21st century and use electricity in their homes. As time marches forward, consumers have more choices surrounding how to get electricity for their homes.
There's an argument to be made that the solar systems of companies like SolarCity’s (NASDAQ: SCTY) and consumer-purchased windmills will be the way of the future. Will we be more »
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Five Stocks That Look Especially Vulnerable to Activist Investors
By Mike Thiessen - April 29, 2013 | Tickers: AEE, CAG, ED, FITB, TYC
Recently, the New York Times reported on a detailed Rotary Gallop analysis that identified publicly traded companies that could be vulnerable to takeovers by activist investors. Although the analysis did not attempt to predict the likelihood of a takeover in any specific circumstance, it did comment on the likelihood of a theoretical takeover attempt's success.
The report found five particularly vulnerable companies: ConAgra Foods (NYSE: CAG), Consolidated Edison (NYSE: EDmore »)
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Safe Dividend Paying Utility Stocks Part 1
By Reuben Brewer - April 22, 2013 | Tickers: AEP, ED, NU
Each month Citi creates a list of safe dividend paying companies. Barron's recently published the list. It included a number of utilities that income investors would do well to consider, including Northeast Utilities (NYSE: NU), Consolidated Edison (NYSE: ED), and American Electric Power (NYSE: AEP).
The Citi list
Each month, Citi publishes a list of “safe” dividend companies. The most recent incarnation contains six electric utilities. While it's more »
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Retirement Mantra: Diversify with Dividend Growth and Reinvestment
By George Schneider - March 20, 2013 | Tickers: AINV, T, ED, KMP, MCD
Why diversify your portfolio? Why diversify into companies that show us the money by consistently increasing their dividends? Why reinvestment these ever growing dividends into the very same companies we’ve already diversified into?
All of these questions can be answered with another question: would you like to retire with a growing stream of income that will protect your purchasing power throughout your retirement years?
If you answered “yes” to more »
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$28 Billion Hedge Fund Winton Capital’s Top Stock Picks for 2013
By Meena Krishnamsetty - March 19, 2013 | Tickers: ED, CVS, LLY, KMB, VZ
Winton Capital was founded by David Harding in 1997. Primarily a quantitative fund, it had over $25 billion in assets under management roughly a year ago. Winton recently filed its 13F for the end of December 2012, disclosing many of its long equity positions going into this year. We use 13F filings to develop investment strategies (read about why you should buy the most popular small cap stocks among hedge more »
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Why Beta Matters to Your Portfolio Now
By James Catlin - March 19, 2013 | Tickers: ED, GIS, KMB
Euphoria is always strongest just before the correction - and this latest four-month rally has proven surprisingly resilient. Because of this resilience, it would be unwise to exit the market altogether, since you might miss out on gains. That's often just as painful as a loss. So how can you safely participate? Start by taking a closer look at your portfolio's beta.
You beta believe it
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5 of the Smart Money’s Brightest Utility Plays
By Meena Krishnamsetty - March 8, 2013 | Tickers: AEP, ED, DUK, NWE, PCG
Financial news has focused on many sectors and themes over the past several years: big energy companies, commodities, a never ending attention on tech stocks, cloud computing, and even Buffett buying a railroad. One of the most unheralded stories over the same period has been the continual, nearly unbreakable, strength in the utility sector. Looking at a three-year chart of the Dow Jones Utility Index produces a nearly perfect low-to-high more »
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Don't Overpay for Dividend Darlings
By Timothy Green - February 28, 2013 | Tickers: ED, MRK, SO
The concept of investing in so-called "dividend stocks" is an appealing one. Not only is there the prospect of share appreciation but also a consistent, ever-growing stream of income. But it's important to avoid overpaying for these types of stocks, sometimes difficult because many trade at fairly high valuations.
There are three important things to look for in a dividend stock. The first is the dividend yield, the second more »
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This Number Says Investors Should Be Concerned
By Chad Henage - February 24, 2013 | Tickers: ED, DUK, EXC, SO
I can't count how many times I've heard analysts and commentators recommend Duke Energy (NYSE: DUK). However, what I don't hear are a lot of facts about what's going on with the company's finances. Since most utility stocks are sought after for their dividend income, isn't it important that investors know whether the dividend is safe?
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Generating Income Without Bonds
By Justin Boucher - February 22, 2013 | Tickers: ED, DUK, EXC
Currently bond yields are at historical lows. The 10-year treasury yields around 2%. For a 25 year old investor like me it doesn't make much difference, because I have almost all of my money in equities. For investors in or nearing retirement though, this is a big deal. Generally as an investor approaches retirement, their financial advisor will gradually convert their portfolio from "aggressive" to "conservative" or from stocks more »
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Invest in Treasuries? These Stocks Laugh at the Idea.
By Nate Wooley - February 21, 2013 | Tickers: T, ED, GIS, MRK, CLX
It's always the case. As an investment broker I had clients every week asking about treasuries. They know about them, the news mentions the price of treasuries every single day, and people understand them better than equities. You invest this much, you get that much back. Very simple.
Except it's never that simple, actually. There is a lot of potential risk and cost involved in treasuries. I don more »
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A Utility For The Long Haul?
By Chad Henage - February 19, 2013 | Tickers: ED, DUK, TEG, SO |
When a company has raised its dividend for the 39th consecutive year, you might assume investors could count on the company well into the future. Since Consolidated Edison (NYSE: ED) just accomplished this feat, the company is in rarified air when it comes to dividend increases. However, in investing we are constantly reminded that past results are not an indication of future returns. Investors should question not only the sustainability of such a streak, but also the wisdom of investing in a utility in the current market.
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The Best Of The Bubble Stocks
By Chad Henage - February 8, 2013 | Tickers: ED, DUK, EXC, SO
I've made no secret of the fact that if there is a dividend bubble in the market, it seems likely that this bubble rests squarely above the utilities industry. While it's true that utilities offer yields that are far superior to many other seemingly “safe” investments like CDs and bonds, they are not without risk. It seems that these stocks are being bid up to their current prices based on yield alone. However, if you want exposure to a utility stock in your portfolio, one of the best options might be Southern Co. (NYSE: SO).
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4 Reasons to Avoid This Company
By Chad Henage - January 25, 2013 | Tickers: ED, EXC, TEG, SO
I'm always looking for undervalued companies, and if they pay a good dividend that's even better. I used to own Exelon (NYSE: EXC) until it became clear to me that the company's main attraction, their dividend, might be in jeopardy. When you buy a stock for their dividend, and management hints the dividend could be cut, you have two choices. You can either accept the risk and hold on, or you can sell your shares and move on. I chose the latter strategy and sold. Not everyone has the same opinion though, and I recently watched a video on Fool.com by Taylor Muckerman where he gave, “3 Reasons To Buy Exelon Today.” With due respect to Taylor, I'm going to go one better and give you four reasons to stay away.
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Are Utility Stocks Priced for Perfection?
By Robert Ciura - January 18, 2013 | Tickers: ED, DUK, SO
Utilities are the classic “widow-and-orphan” stocks—meaning they are slow and steady providers of dependable income. While earnings per share growth isn’t going to take anyone’s breath away, utilities operate in a highly regulated industry and thus aren’t likely to collapse. These companies provide electricity, and are therefore critical to the prosperity and security of the nation. Even in a dire economy, utilities provide investors the certainty more »
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Seeking Yield? Don’t Forget Electricity Providers
By Damon Churchwell - January 7, 2013 | Tickers: ED, HE, TAC
The most stable equities and some of those offering the highest dividend yield seem to be electricity generators. That said, the stocks have sold off somewhat of late, probably because investors are taking on more risk and leaving these holdings behind.
The selloff creates an opportunity for conservative market participants to gain some capital along with steadily increasing payouts. Here are just a few of the group in detail.
TransAlta more »
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Stocks with Over 100 Years of Uninterrupted Dividends (Part II)
By Anh HOANG - January 4, 2013 | Tickers: AKZOY, ED, PPG
In addition to capital gains, a dividend is an important source of income for investors. There are several businesses that have long histories of dividend payments that are worthwhile for investors to hold for a very long time. Following my recent article featuring three such businesses, which have been paying uninterrupted dividends for more than a century, I will unveil two more stocks with similar characteristics.
Utility Company, A Great more »
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