Not exact matches
Icahn's statement about Souki's termination also refers negatively to his
stock sales and makes it plain that he
thinks an entrepreneur like Souki had no business running Cheniere, which is poised to become a real energy
utility.
For whatever reason, most investors aren't wired to
think of common
stocks like they do office buildings or high - quality furniture, which they understand has
utility for more than one lifetime.
It's making me
think there would be
utility in a «delay of exit» covenant for the parties to consider in connection with a preferred
stock round.
Most
utilities, packaged food and mature pharmaceutical companies possess characteristics often
thought of as typical for value
stocks: high free cash generation, high quality balance sheets and high dividend payouts.
I
think this is also worth keeping in mind, as many investors would judge
utility stocks mainly by dividend yield.
Given that industrial
stocks typically operate in boring and more predictable industries (
think telecommunications,
utilities, banking), industrial
stocks often pay out a large amount of earnings as dividends, and these dividends grow as the earnings grow (in a relatively predictable manner).
A dividend
stock that shows virtually no growth (
think utilities) and returns close to 100 % of its cash flows to shareholders is more like a bond than a growth
stock.
Another common strategy is using passive products actively: for example, you might use sector ETFs to move from defensive
utilities to aggressive technology
stocks when you
think the timing is right.
A 4 % or 5 % yield is great but I
think 10 - 15 years down the road my AAPL yield on cost will far exceed any
utility stock I buy today.
While we
think you should maintain some exposure in resource
stocks, you should still aim for balance among most if not all of our five main economic sectors: Resources & Commodities, Finance, Manufacturing & Industry,
Utilities and the Consumer sector.
Contrast my Mom, who had her 50/50 mix of
utility stocks and growth
stocks (a clever strategy, which as far as I know, she
thought up herself).
This includes the much - maligned
utility stocks that have been
thought (incorrectly) to be market laggards.
It's hard not to
think that
stock will be riskier than, say, a safe - haven
utility industry
stock with a low beta.
What do you
think about investing in
utility stocks and Southern Company in particular?