Utilities - AES!!! - KMI!?!?
This is becoming a boring sector. I missed Entergy, the pipeline stocks have run, and I prefer the Real Estate sector that has similar, or higher, dividend yields. I just do not trust the regulators. In the old days they just said your allowed return is x%, and they left you alone.
AES - AES - $13 - is just too cheap to ignore. AES is a complex special situation stock, not really a pure utility. Maybe it is a Biden/Harris stock in a Trump world, but that is why the stock is cheap. AES seems to have a good relationship with the data center crowd. I think they have enough money to still invest in green energy. There has been a big restructuring here, and I think AES kept the good assets. This is not a stock for the risk averse crowd.
Kinder Morgan - KMI - $26 - the stock has run from $17. Today the yield is just 4%. Maybe the “cool crowd” will take this stock high if the FERC does what Trump wants. There is a tactical decision to be made on the proper time to sell.
Other utilities to consider:
Northwest Natural - NWN - $39 - decent unregulated business, Pacific Northwest, 5%
Evergy - EVRG - boring, solid wind business, 4.4%, Kansas
Essential Utilities - WTRG - water utility, mildly aggressive accounting, East coast, 4%
UGI - UGI - $27 - propane issues, 5.5%, Pennsylvania
Northwestern Energy - NWE - $53 - boring, 5%, Midwest, Buffet to buy?
Pinnacle West - PNW - $85 - Barrow favorite - 4.2%, Arizona
Dominion Energy - D - $54 - offshore wind problems, 5%, Virginia