Why We Love Utilities…Again

Last June we wrote in our newsletter about why we love utilities.

And it was an outstanding time to buy them.

14 months later we now see great opportunities in utilities…Again.

As a result, we’re publishing a list of some of the top utilities (in our humble opinion) we believe you should consider. *

(*Note:  Because we are not Investment Advisors, we are not advising you to buy them…and that you should check with your financial advisor first)

WE LOVE UTILITIES

So, despite being “boring” and/or “widows and orphans” stocks, utilities are considered one of the safest harbors in a financial storm.

Why?

• Everyone needs them to exist
• They never go out of business (they’ll get bought out but not go out of business)
• We support them every month whether you like it or not…unless you’re an extreme prepper
• They have a built-in guaranteed rate increase to keep increasing their earnings
• Their cash flow is predictable and consistent
• The Demand for Energy to Power AI is Off the Charts…and Utility Companies will Invest over $1 Trillion in the next few years, just to keep up with demand

Notice we said just to keep up with demand with AI.

The good news is boring utility stocks will continue to grow and pay dividends thanks to the demands for Artificial Intelligence.

The bad news is, we will subsidize their profitability with rate increases.

Translation: Your utility bill is going to go up.

And as we mentioned above, since you are paying them every month so you don’t freeze in winter or roast in summer, you might as well get paid back in the form of dividends while you are waiting.

So, in keeping with our Short and Sweet Tips theme, here are this month’s best buys:

• New Jersey Resources (NJR) currently $46.621…target price is $56.
• NextEra Energy (NEE) currently $70.54…target price is $88.

Another benefit of NJR and NEE is that they have a proven track record of increasing their dividends every year.

And as people look for more safety – in addition to yield – utility stocks should quietly outperform the markets.

Keep in mind, NJR serves the metropolitan area around the financial center in New York.  And the financial world is the biggest user of AI.

And because we are in Florida, we tend to go with NextEra Energy (NEE), formerly known as Florida Power & Light because they have the most extensive solar program on the planet.

You know…Florida, sunshine…Duhhhhhh!

If you like these tips, be sure to read the Short and Sweet Tips column every month in our “Simplifying Wall Street…In Plain English” newsletter (HERE).

Share this with a friend…especially if they like utility stocks.

They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~