Investing Strategies for Income: Bonds vs. Stocks | FAST Graphs
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- Bonds vs. Stocks
In this video, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation will discuss different strategies for income investors in the current high-interest rate environment. He will explore the trade-offs between buying bonds and stocks, and whether a combination of both is a good approach. Chuck will also analyze the potential growth and income opportunities in utility stocks.
The video provides insights into the predictability of earnings and dividend growth rates, and how they impact investment decisions. Important data and comparisons are presented to help viewers make informed choices.
Time Codes:
0:00 - Introduction by Chuck Carnevale
02:05 Portfolio View of Utility Stocks
5:42 - American Electric Power (AEP)
7:08 - AES Corp (AES)
7:50 - Black Hills Corp (BKH)
8:16 - Chesapeake Utilities Corp (CPK)
9:05 - Eversource Energy (ES)
9:27 - Evergy Inc (EVRG)
9:38 - Hawaiian Electric Industries (HE)
10:26 - Nextera Energy Inc (NEE)
10:50 - New Jersey Resources Corp (NJR)
11:07 - One Gas Inc (OGS)
11:15 - Spire Inc (SR)
12:40 - Southern Co (SO)
12:51 - Edison International (EIX)
14:25 - Evergy Inc (EVRG)
20:51 - Hawaiian Electric (HE)
22:47 - New Jersey Resources Corp (NJR)
24:37 - Lowes Companies Inc (LOW)
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Disclaimer: FAST Graphs is a tool designed to reveal and present information related to financial data and investment metrics. It is not intended to provide specific advice or recommendations. Instead, it offers a comprehensive view of relevant data, empowering users to make informed decisions based on their own analysis. It's your first step to a more comprehensive research and due diligence process. In short, it is a tool to think with. The opinions in this video are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned.
#dividends #stocks #investing - แนวปฏิบัติและการใช้ชีวิต
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Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
@shawanderson2684 Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. 'Alice Marie Coraggio", a licensed fiduciary who has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@shawanderson2684 Alice Marie Coraggio is her name .
Lookup with her name on the webpage
Thanks Chuck! These sector focused videos are great, more sector videos welcomed!
I'd love to see a similar video on REITS as many are undervalued. I've been buying O, MPW, OHI, and WPC. Watching for lower entry on SPG. Would like to know your recommendations to add to my watch list. Thanks Chuck!
Chuck, you are the best! Regards from Argentina!!
Awesome video Chuck and I agree 100% At 52 and soon to retire, even I don't believe in bonds as there is very little hedge to inflation. I would rather keep some cash on the side lines and wait for good companies to drop and then buy. At the very minimum, utilities are considered my "safest" investment and as you said will provide a dividend and capital appreciation. I would however would prefer buying back of cheap shares improving shareholder value.
Thank you Chuck, again interesting and great information! All the best to you from Europe again,!
Thanks Chuck. As always another excellent video.
Appreciate your ideas Chuck. My approach is both dividend stocks and bond funds/etfs for diversification.
Utility closed end funds like UTF should be great for diversification and pay 8% yield or so.
Super video, Chuck! Thank you :)
Another great video, Chuck. I am currently increasing my positions in the Utility Sector using FASTgraphs to help me identify companies that are trading at fair value or at a discount. I currently like several utilities that you did not cover in your video: UGI, NFG, and WTRG. I do own ES which you did cover.
Management of UGI is incredibly dumb. So be careful. We had 80 year low in rates and expectation for growth in rates but this dumb and dumber management went into this hiking cycle with 40% of debt with variable rate and another dozens percent of fixed debt needs to be refinanced till 2025.
So they now refinance at 12% and interest expense grew 17%.
Management is now forced to sell their European business and Amerigas, which they acquired not so long ago.
They do the same dumb mistake as MPW and as Janet Yellen.
So be careful with UGI and expect fire sale of their assets at bottom low prices simply to repay debt which these morons could refinance two years ago at 80 year low rate.
Excellent subject to cover. Thank you!
Thanks for this very interesting video.
Thanks Chuck! Great comparison!😊
Thank you Chuck for showing your personal favorites on the utitilty sector. i will consider this. Could you also do an analysis on european stocks with stable div growth? How many non us american stocks a covered in fast graphs?
Thank you so much for your invaluable insights. Upped my learning curve a lot!
Just upgraded to Premium!! So useful, thanks for the videos Chuck. Gotta think about taxes too, there a good episode of Ask the Compound this week that walks us thru bond taxes and strategies to consider.
Great timing. I was looking for yield and I just bought some SPAXX🤠
Hello CHuck, thank you very much for the great video. I miss UGI, is there a special reason for this, as you have often mentioned UGI positively.
Subscribed and clicked the bell. I gotta look more into learning your fast graph system for sure
Always learn a lot from comparisons. Thank you for so many great charts.
Thanks Chuck. do you have one of them in your portfolio? thanks
Selectively in portfolios that need current income over growth
Bond and bond ETF can Grow also when interest rates drop. In fact, they have been known to our grow stocks.
Although that can be true to a limited extent, we are not in that dropping interest environment just the opposite
ALG. I got in when it seemed to be fairly or below value at $14. Then the bottom dropped and they cut the dividend. I added some more because it again looked undervalued with a potential for share price recovery. Any news on ALG’s fundamentals?
Something I haven't heard much regarding electric utilities is the potential future growth from the growing electric vehicle market. Say for example that 20% of all cars are electric in the future, wouldn't that cause a significant uptick in the use of electricity?
Not without a concomitant - and anticipatory - significant uptick in capital expenditure to update/upgrade existing grid infrastructure to sustain such increased consumption.
Looking forward to the REITS video that you are going to do next. Thanks again
Agree that valuation matters and it matters a lot, but so does relative valuation as it compares to alternative investments. I think one thing to consider before investing in the utility space is the relatively high levels of debt for the sector. Higher interest rates seem like it will weigh on earnings and could prove to be problematic as debt gets repriced when refinanced.
ergo stock prices
@@FASTgraphs and other asset classes
Some utilities has no or little variable debt and no or low fixed debt to refinance in next 2 years. So rates does not matter for them. Two years from now rates will be at zero again and if not and rates stay higher for longer than utilities will be your least problem as US will hit the wall with 33T debt refinanced and interest alone making half of the tax revenue.
@@Cap_management I don't think the rates will be necessarily at zero but i think they will be lower than now. But then the Chuck's comparison falls because bonds change their price too. So if the rates stays where they are for the next 10 years, then it will eat some of the utilities earnings. If the rates will drop, then it is not true that the bonds offers "only 5 % for 10 years"
NEE has very low sales growth. So it needs more research why they increased EPS so much over the years while sales are near flat. Also free cash flow is not only negative but keep getting lower year by year by a lot.. Also most of these utilities dont make any free cash flow so many people are curious how they pay dividends if they have zero money left after making investments. Using debt and share dilution?
Bonds with long duration are interesting for a gamble on falling yields, but longterm I'm after REITS
I bought VPU, think its like the same as picking some stocks over the years.
I agree
I thought BMY might be similar, but perhaps wrong. Any thoughts on BMY after a year since last video?
Picked up BMY for $50
Thank you for your reply. I accumulated BMY shares over a four year period with an average cost of 60.22 and lowest cost of 55.03 currently at a 16% loss not counting dividends. Perhaps unfortunately, I currently have as much in BMY as I'm prepared to put is one stock.
I thought hard about selling BMY when my holding dropped to breaking even, but could not change my thinking from a previous good choice to perhaps time to sell. The past is the past and I don't see where I made the mistake without the benefit of hindsight. The only thing I can do now, is evaluate the future investment opportunity for BMY in the future and sell or hold. The dividend rate is somewhat addictive - not counting taxes - balance the loss over 4 years - I feel a little better. Good luck in your choice and for now mine.
Chuck, I forgot to ask, why is the gas utility company UGI not on this list of utility stocks? You included UGI as part of an income portfolio you created awhile ago. I bought some back then, and it looks like a better buy and more undervalued today. Have you changed your assessment of UGI?
No, my opinion of UGI has not changed as a long-term income vehicle. The reason it was not included in this list is because I covered it previously. As I said in the video, I did not cover all utilities just 10 that I thought had become recently attractive. Regards, Chuck
No OGE?
Also many of these utilities while growing stable now had often bad earnings and earnings decreses after year 2000 so the question is why and if it can happen again?
As I have often stated, there is no substitute for continuous comprehensive research and due diligence.
Please review FMC
Forget about indebted FMC and look at Corteva with almost no debt and A rating.
So elephant in the room: MPW. What's going to happen? Haha jk
Opportunity knocking but only smart ones will answer
@FASTgraphs I'm averaged down to $5 so as long as they don't go bankrupt I'm comfortable
Hi ❤😊
MPW ……. What is going on???? It’s bad….
Interest rates 😊
Nothing, except people selling. I am not.
@@FASTgraphs but why they selling…
I am adding to MPW at these low prices. When interest rates fall the price will go back up
Most people only know share price charts and thus hate stocks which go down and love stocks which go up. Fear now overtook greed. It is not much about rates as OHI is at 52 week high.