After my recent article covering the role of utility stocks in DRIP accounts specifically and income accounts generally, I was happy to hear from a few of you that you have successfully owned various utilities for 15+ years, and been pleasantly surprised by the steady returns (and occasional S&P 500 index outperformance) that has occurred over the years. For me, I found it interesting to hear that Western U.S. utilities have performed on pace with Southeastern U.S. utilities, something I didn’t find intuitively obvious.
I’ll have to add that to my study list over Christmas–first, is the stereotype of coastal regulation accurate? If so, by how much? And how does this affect the investment returns? If the returns are nearly equal, I wonder if there is some type of valuation differential that could explain the parity. Maybe the presumption of intense regulation for electric utilities in states like California lead … Read the rest of this article!