Long
Utilities: A Sector that will Outperform Over the Next 5+ Years
Over the past 15 years utilities has been one of the superior major sectors in the stock market, with the past year only representing a continued surge in growth.
With interest rates poised to approach 0 in Canada and the USA within the next 8-12 months, this will allow for the acquisition and ultimately, the growth of many utility projects.
While no utility stock will ever offer the 100% or 200% returns you can see in small caps in say, the tech sector, utilities offers an excellent preservation of capital with typically 5-7% dividend yields and therefore gives investors excellent appreciation and free cash-flow in a TFSA or RSP (401k).
With no major sector ever "immune" to a recession or global slowdown, looking for high-quality and high-cash flow stocks are your best bet for cash safety. The utility sector also offers some of the best dividend yields overtime and contrary to the energy (oil) sector which has an unknown future, there are several strong utility stocks poised to capitalized on the renewables. While many are starting to see the impacts, the next recession will decimate high-speculative and high-debt stocks (i.e. many IPOs have fallen 50-100% in the past 3 months; many other examples can be found as well).
RNW is one of my favourite stocks because it is roughly 35-40% undervalued and could jump to 23-24.00 within the next 12 months. Strong management, diversification amongst projects and high cash-flow are some of the stocks strong suits.
Brookefield Renewable Partners (BEP.UN) is also another strong utility stock.
With interest rates poised to approach 0 in Canada and the USA within the next 8-12 months, this will allow for the acquisition and ultimately, the growth of many utility projects.
While no utility stock will ever offer the 100% or 200% returns you can see in small caps in say, the tech sector, utilities offers an excellent preservation of capital with typically 5-7% dividend yields and therefore gives investors excellent appreciation and free cash-flow in a TFSA or RSP (401k).
With no major sector ever "immune" to a recession or global slowdown, looking for high-quality and high-cash flow stocks are your best bet for cash safety. The utility sector also offers some of the best dividend yields overtime and contrary to the energy (oil) sector which has an unknown future, there are several strong utility stocks poised to capitalized on the renewables. While many are starting to see the impacts, the next recession will decimate high-speculative and high-debt stocks (i.e. many IPOs have fallen 50-100% in the past 3 months; many other examples can be found as well).
RNW is one of my favourite stocks because it is roughly 35-40% undervalued and could jump to 23-24.00 within the next 12 months. Strong management, diversification amongst projects and high cash-flow are some of the stocks strong suits.
Brookefield Renewable Partners (BEP.UN) is also another strong utility stock.
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.