Electric utilities are famous for their defensive characteristics, as well as their fat dividend offerings. Electric utility equities operating in the States offered an average dividend yield of 4.5% as of August 2010, which is quite an attractive amount for most of the investors. These types of stocks perform well in times of economic crisis, which is why they are considered defensive stocks. People always need and pay for more »
A utility stock is often a good investment because of the moat and the potential for dividends, but these stocks also respond inversely to the economy. Utilities may do good business, but as the market rises they tend to get left behind when investors get confident and seek more adventurous waters. Now is a good time to check under the hood and get ready for when a great deal presents more »
Covanta (NYSE: CVA) uses waste that would otherwise be sent to landfills to produce electricity (the company has about 1 million residential customers in North America) as well as to extract some metals for re-use. At a market capitalization of $2.3 billion, the company trades at 32 times earnings, which is a bit high but could be appropriate for a “next generation” type of company.
However, so far the more »
Many nations have embarked on the mission to clean the world and to achieve economic growth that is environmentally sustainable. Businesses have increased the use of green energy and have started to promote environmentally friendly policies. The recent surge in oil prices has increased the number of alternative energy production initiatives, which are increasingly receiving support from a number of governments around the world. The quest to clean the world more »