Utilities SPDR (ETF)

• Climbing the Wall of Worry

  By Declan Fallon - May 9, 2013 | Tickers: GWR, PCYC, SRE, XLU

  According to the American Association of Individual Investors (AAII), bullish sentiment clawed its way to 31%. What's unusual about the low level of optimism is how the S&P has been pushing new multi-year highs. Market rallies often have to climb a wall of worry, and it would appear there is plenty of "worry" left in the tank for this market to rise. It's only when everybody is more »

• Selling in May? Here's Where to Go

  By Jordan Wathen - May 1, 2013 | Tickers: XLP, CSJ, SPY, XLU

  It seems that nothing can get in the way of this bull market.

  The S&P 500, as measured by the SPDR S&P 500 Trust (NYSEMKT: SPY), is up more than 12.5% year-to-date with dividends included. The market is crossing historic nominal levels, and now trades at 23.38 times cyclically-adjusted earnings, according to multpl. That's almost 40% higher than history's median valuation.

  Lofty valuations are more »

• Why Apple Could Soar on a Dividend Announcement

  By Jordan Wathen - April 16, 2013 | Tickers: AAPL, GOOG, XLU, VNQ

  Analysts are suggesting that Apple (NASDAQ: AAPL) will announce a substantial new dividend when the company declares its quarterly earnings in May.

  This is big news for tech investors. After all, analysts expectations help shape reality, and companies that don't keep up with expectations are sold off heavily in the days that follow.

  A Bernstein analyst, Toni Sacconaghi, was most outspoken about a higher dividend. In a note, he more »

• Why Apple Could Soar on a Dividend Announcement

  By Jordan Wathen - April 16, 2013 | Tickers: AAPL, GOOG, XLU, VNQ

  Analysts are suggesting that Apple (NASDAQ: AAPL) will announce a substantial new dividend when the company declares its quarterly earnings in May.

  This is big news for tech investors. After all, analysts expectations help shape reality, and companies that don't keep up with expectations are sold off heavily in the days that follow.

  A Bernstein analyst, Toni Sacconaghi, was most outspoken about a higher dividend. In a note, he more »

• Why Apple Could Soar on a Dividend Announcement

  By Jordan Wathen - April 15, 2013 | Tickers: AAPL, XLU, VNQ

  Analysts are suggesting that Apple (NASDAQ: AAPL) will announce a substantial new dividend when the company announces quarterly earnings in May.

  This is big news for tech investors. Analysts expectations help shape reality. Companies that don't keep up with expectations are sold off heavily in the days that follow.

  A Bernstein analyst, Toni Sacconaghi, was most outspoken about a higher dividend. In a note, he suggested that Apple:

  • Should more »

• Three Utility ETFs for the Expected Correction

  By Daniel James - April 8, 2013 | Tickers: XLU

  With major US indices at all-time highs following a huge rally, many market analysts are now calling for a correction to cool down the technical and provide opportunity for the next leg up. Price action over the last few days has suggested this correction may have already begun, which means it may be time to start playing defense. Traditionally, utility stocks have been a good bet during market downturns, due more »

• Why Cyprus Could Spell the End of the EU

  By Bob Chandler - April 3, 2013 | Tickers: XLV, EUO, EPV, XLU

  The European Union (EU) looked like it dodged another crisis when Cyprus agreed to a 10 billion euro bailout in return for some radical reforms. Unfortunately, the way it was handled increases the risk of a messy dissolution of the EU, and such a break up could devastate any unprepared investment portfolio on a scale similar to that of the 2008-2009 financial meltdown.

  Here’s why the Cyprus deal puts more »

• Utility Investors Shouldn't Forget their History

  By Jordan Wathen - March 20, 2013 | Tickers: XLU

  Utilities are the perfect kind of defensive investment. Their product – electricity and natural gas – is just as important in a recession as it is a growing economy. Over time, this defensive industry has rewarded investors with fairly safe returns, especially in regulated markets where profits are essentially guaranteed.

  But investors shouldn't forget exactly how capital-intensive this business is. Nor should they forget the effects of interest-rate policy on the more »

• Gold's Future Does Not Look Shiny

  By Federico Zaldua - March 14, 2013 | Tickers: XLP, GLD, XLU

  I have always liked assets that yield steady streams of cash because I can (more or less) grasp the value of such a stream of cash flows. That is the reason to explain why I avoided gold (or, for instance, Art) as an investment. I simply never really knew how to value it. The gold value yardsticks I have heard were always somewhat esoteric. I remember that in his excellent more »

• Utilities: Reasonable Safety, Nice Dividends And Now Capital Gains?

  By Bob Chandler - March 9, 2013 | Tickers: GAS, CNP, POR, XLU

  Utility stocks have long been considered a sound investment. They offer both consistent income and safety of principal. In return, they're expected to have limited capital gains potential.

  However, the sector may be offering better opportunities for price appreciation than seen in the past. Utilities have not been immune to the volatility provided by the market's current trading-based mentality. While this volatility might pose discomforting share price drops more »

• 5 Reasons to Buy Utility Stocks

  By Declan Fallon - March 7, 2013 | Tickers: CNP, DUK, EQT, XLU

  Utility stocks have received very little interest, despite a favorable environment.  Here are five reasons why you should consider utility stocks now.

  1. Low interest rates
  The utility sector  enjoys its best performance during  periods of low interest. Utility stocks are traditionally highly leveraged, requiring large amounts of capital.  High interest rates eat into utilities' profits, and offer little wiggle room when it comes to retiring or refinancing existing debt more »

• Unwarranted Sell-Off In Master Limited Partnerships, Buy the DIP!

  By Peter Epstein - December 3, 2012 | Tickers: ARLP, NRP, XLU

  This Just In! Fiscal Cliff Sends High Yielding Equities Lower!

  Fear of a "fiscal cliff" was said to be a big factor in November's significant under-performance of many high yielding stocks and Master Limited Partnerships, "MLPs." Obama's reelection was also discussed in connection to the meaningful decline of energy-related stocks and MLPs. For example, in November Utility sector ETF Utilities Select Sector, (NYSEMKT: XLU) was down as much more »

• Utilities Investing; Always a Safe Place

  By Jeff Stouffer - September 4, 2012 | Tickers: DUK, S, XLU, VPU

  Investing in utility stocks has always been considered a safe place for capital with the long-term outlook of positive growth. Stockbrokers pitch this as an opportunity to get cash back from the utility company that bills residences every month for these services. 

  Finding the appropriate utility stock or stocks to purchase and hold is not a simple task. This industry is highly regulated and has partial monopolies in service areas more »

• 3 Ways to Euro-proof Your Portfolio

  By Justin Carley - June 26, 2012 | Tickers: MO, IWM, PM, ^RUT, HSY, XLU

  There is little debate to the notion that Europe is in a recession, especially if one tiptoes outside Germany.  The Markit Eurozone PMI Flash Index was 46.0 in June and has remained below the contraction/expansion line of 50 in nine of the last ten months.  That is persistent weakness.  Other emerging markets are also suffering as well.  Take China for instance, its PMI has been below 50 for more »

• Dividend ETFs for Income and Diversification

  By Andrés Cardenal - May 21, 2012 | Tickers: XLP, DVY, XLU, VNQ, DEM

  Interest rates are at record lows as investors seek refuge from the global economic turmoil in US Treasury bonds and other low-risk assets: 10-year US bonds are yielding around 1.7%, which hardly constitutes a convenient entry price from a long-term point of view.

   

  If the European crisis keeps getting worse, or if we see another round of quantitative easing from the Federal Reserve, interest rates could get even lower more »

• ABB LTD will be Looking to Emerging Markets for Growth

  By John Mylant - April 20, 2012 | Tickers: ABB, ROK, SI, XLU

   

  WebRep

   

  currentVote

   

   

  noRating

  noWeight

   

   

• Best High Dividend Electric Utilities

  By Meena Krishnamsetty - March 21, 2012 | Tickers: AT, DUK, PPL, PGN, XLU

  Lately, lower unemployment and an uptick in business activity have been tailwinds for the utility industry. For those looking for dividend income and exposure to the regulated utility industry, the sector ETF Utilities Select Sector SPDR (NYSEMKT: XLU) is a good option with a respectable 4.0% yield. For those aiming higher, we have a couple picks in the sector with stable earnings and potential future dividend hikes.

  Duke Energy more »

• ETFs for World Water Day

  By Christian Magoon - March 21, 2012 | Tickers: CGW, FIW, PIO, PHO, XLU

  The United Nations holds World Water Day on March 22nd each year in an attempt to "focus attention on the importance of freshwater and sustainable management of freshwater resources." The critical resource is the only commodity of which there is no replacement. Each year freshwater becomes more scarce as more demands are placed on the supply through growing populations and rising standards of living. Some often refer to water as more »

• Utilities as an Alternative to Bonds

  By Andrés Cardenal - February 17, 2012 | Tickers: AEP, ED, EXC, SO, XLU

  US treasury bonds with 10 years duration are yielding around 2% currently. That hardly makes a seductive investment, and those kinds of returns could easily fail to protect capital after inflation in the long term, as Warren Buffett recently explained in an article published in Fortune. Treasury bonds could continue rising if we see further stimulus measures from the Federal Reserve, but there is not much room for price gains more »

• Utilities: The Best Performing Sector by Capital Appreciation Offers Above-Average Dividends as Well

  By Eric Lumsden - December 11, 2011 | Tickers: AEP, DUK, PPL, SO, XLU

  Electric utilities are currently the best performing sector in the S&P 500, up 14.5% over the past 12 months. These companies also offer dividends which far surpass the 1.96% yield on the S&P 500.  In addition to the high performance, these stocks are considered fairly safe on the whole.  Many utilities still operate in a regulated environment, able to raise their rates through petitioning regulators instead more »