Utilities Generating Some Powerful Returns

Mike Larson

Do you know what one of the best-performing stocks in my High Yield Investing newsletter is? Probably one of the least “exciting.”

It’s a utility whose business is nowhere near as sexy as the high-tech, media-friendly names they’re always talking about on CNBC. It provides electricity and natural gas to 4.4 million customers in Wisconsin, Illinois, Michigan, and Minnesota.

But I’m pretty sure my subscribers like the fact it sports one of our highest-possible Weiss Ratings (“A-”). They also get to enjoy its market-beating, 3% dividend yield. And I’d bet dollars to donuts they LOVE the fact its shares just exploded to an all-time high!

I can’t share the name or ticker symbol here, as that just wouldn’t be fair to my paying subscribers. But you can easily join the High Yield Investing family by clicking here or calling my team at 877-934-7778.

Even if you’re not ready to take that step, though, I urge you to consider investing in the sector in your own portfolio. That’s because these supposedly stodgy stocks are generating some very powerful returns. Take a look at this S&P Sector Short-Term Performance Screener at the Weiss Ratings website. It shows the major S&P 500 sector ETFs, sorted in descending order by 1-month total return …

Data Date: 11/15/2017

You can see the Technology Select Sector SPDR Fund (XLK, Rated “B+”) is going strong, with a return of around 5% since mid-October. But right on its heels is the Utilities Select Sector SPDR Fund (XLU, Rated “B”), with a return of 3.8%. Not only that, the XLU is also up a very respectable 18.3% year-to-date. That puts it slightly ahead of the S&P 500 ETF (SPY, Rated “B”) at 17.3%.

This just goes to show the value of focusing on highly rated, high-dividend, high-quality investments! As I’ve stressed repeatedly all year, they offer the best combination of long-term returns, generous income, and stability in times of stress.

They’re also not as vulnerable to a Federal Reserve rate-hiking cycle as the mainstream press would have you believe – especially in the cycle phase we’re in now. So, don’t fall for the tired old narrative that utilities can’t be an exciting part of your portfolio.

Here’s another exciting piece of news: I’m pleased to announce I’ll be sharing more details about my favorite higher-yielding investments at the MoneyShow Orlando. It runs from February 8-11, 2018 at the Omni Orlando Resort at ChampionsGate. My Saturday presentation will focus on my top investments for 2018, and I’d love to see you there in person.

The event is completely free for investors like you. All you have to do is go to the MoneyShow website here and register by clicking the “Attend Free” button at the top right of the page. It should be a great conference!

Until next time,

Mike

 


Mike Larson, Senior Analyst

ETF Spotlight Edition, by Mike Larson, Senior Analyst

Mike Larson is a Senior Analyst for Weiss Ratings. A graduate of Boston University, Mike Larson formerly worked at Bankrate.com and Bloomberg News, and is regularly featured on CNBC, CNN, Fox Business News and Bloomberg Television as well as many national radio programs. Due to the astonishing accuracy of his forecasts and warnings, Mike Larson is often quoted by the Washington Post, Chicago Tribune, As-sociated Press, Reuters, CNNMoney and many others.

About the Income & Dividend Analyst

In an era of high-risk exuberance, Mike Larson stands out as a leader in conservative investment strategies that outperform the market overall. Using the safety-oriented Weiss Ratings as a guide, he has a proven history of guiding investors to stocks and ETFs that provide asset protection, consistent dividends and excellent growth.

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