The Current Risk of Utility Stock Investing

I have a special fondness for York Water (YORW) stock because it has been paying out dividends uninterrupted since 1916. If you can keep sending cash to your owners during General Sherman’s March to the Sea, the Battle of Somme, the Battle of Guadalcanal, and all through to the post-war tech revolution, you deserve commendation for exceeding expectations that are nearly unmatched in the field of business.

But just because I love a corporation’s history does not mean that I can ignore the role price plays in determining whether or not a stock is a good investment at a particular point in time.

When you look at York Water, you should see a business that grows earnings 4-6% over the long haul and raises the dividend by 3-5% each year. It’s basically a glorified inflation hedge that gives you a slight bit of value created in excess of the inflation … Read the rest of this article!