Comments on: Utilities For A Well-Rounded Dividend Investment Portfolio *

By: Monevator

Monevator — Sat, 28 Feb 2009 10:03:31 +0000

Here in the UK, utilities have become very expensive relative to the market, as measured by yield. I’d certainly still have one in a dividend portfolio, but there’s a lot of solid companies now offering more comparable yields that have a better shot at growing over the long-term.

Great list from Munger! I’m going to link to it.

By: Best Finance and Investing Articles February 2009 | Darwin's Finance

Best Finance and Investing Articles February 2009 | Darwin's Finance — Sat, 28 Feb 2009 02:19:18 +0000

[...] Nice, Safe Yields in Utility Stocks [...]

By: Dividends4Life

Dividends4Life — Fri, 27 Feb 2009 12:48:06 +0000

Chuck: I looked at Duke some time back and was under-whelmed. I have not looked at Dominion.

Best, Wishes,
D4L

By: Chuck

Chuck — Fri, 27 Feb 2009 07:46:43 +0000

What is your feeling about Duke and Dominion going forward?

By: Dividends4Life

Dividends4Life — Fri, 27 Feb 2009 01:35:25 +0000

All: I am working on a followup post to what happened to TEG. There are some interesting observations to made, and obviously lessons to be learned.

Best Wishes,
D4L

By: kewgardens

kewgardens — Thu, 26 Feb 2009 18:35:07 +0000

By the way, would you recommend increasing one’s position in TEG given today’s drop? If TEG reduces its dividend to $1.68 (65% payout of estimated $2.58 earnings, it would yield approximately 6.1% at current (discounted) prices.

By: kewgardens

kewgardens — Thu, 26 Feb 2009 18:21:53 +0000

TEG just blew up today. Projects lowered FY 2009 earnings of only $2.51-$2.66, which is below what is necessary to cover their (recently enhanced!?) $2.72 dividend.

What are your thoughts on TEG now? Is today an overreaction? Is the dividend safe? How much might it be reduced?

And how could the Board have increased the dividend just two weeks below this earnings report?

By: Poor in MO

Poor in MO — Thu, 26 Feb 2009 17:18:06 +0000

You got your wish. TEG has fallen 25%. With Obama and power hunger Dems, I wouldn’t trust the otherwise safe utility industry either. Probably going to nationalize all utilities so the poor can heat their houses to 80 degrees. Worked so well in eastern Europe, until someone had to pay for it all.

By: Red Dog

Red Dog — Thu, 26 Feb 2009 16:17:28 +0000

I own some TEG and ED. Loved them but maybe we are entering a bad period for utilities.

The next bomb will be the “O bomb a”. They will be attacking utilities with a vengeance for their carbon footprint. Is there a list of utilities that would be least affected by the administration’s attack on coal produced energy? I noticed that its rather difficult to ascertain how deep a utility is into coal by looking at their yearly reports. Its like pulling teeth.

By: Red Dog

Red Dog — Thu, 26 Feb 2009 15:03:53 +0000

Great timing. Day before Teg sinks 26%. Always wait till after earnings.