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SECRET #1: Focus only on stocks in businesses that are absolutely essential to modern life. Think about it: Wall Street can crash. The economy may slump. Natural disasters may strike.
But power, gas, communications and water services will always be in demand. In fact, we’ve become increasingly dependent on them every day for well over a hundred years. Rampant population growth and development virtually guarantee ever-increasing demand for even more power, energy, communications service and water supply for the next hundred years and beyond.
That spells unparalleled opportunity for you to build real wealth – double-digit growth plus steady income – regardless of Wall Street’s ups and downs. And without getting suckered into the mindless pack mentality that has everyone else settling for an average yield of less than 2% from their S&P 500 and NASDAQ-laden portfolio.
Continued below...
SECRET # 2: To build serious wealth, you don’t have to trade frantically, chase pie-in-the-sky startups or throw your hard-earned cash away playing risky long-sh
In fact, those hare-brained strategies are why so few investors ever make any real money in the stock market. Sure, plenty of people have a few winners to their name, and they like to brag about them over a few cocktails or on the golf course.
But they won't tell you about the over-hyped losers they bought, chasing the latest trend. Or all the times they’ve been whipsawed out of great returns by following mindless stop/loss rules. Or how they’re paralyzed in a “hold and hope” strategy, hanging on to increasingly worthless shares, fearing their paper loss will turn into a real one.
SECRET #3: Utilities are your best bet for real growth... especially if you’re savvy enough to look past run-of-the-mill Wall Street plays.
Take a look at Verizon’s former yellow pages unit IDEARC. It’s up more than 30% since it was spun off to shareholders in late 2006, and Utility Forecaster continues to recommend this play. The June issue highlighted a number of deals that could play out even better… and there are many more to come in future issues.
SECRET #4: In addition to generating a steady stream of income today, utilities are far and away your most reliable play for tomorrow.
Utilities are the ideal vehicle for long-term growth as well as short-term income. No stock goes up all the time. But if you knew of an industry whose services were absolutely essential to modern life, an industry so dominant that it enjoyed steadily rising sales and earnings… paid dependable dividends… and helped investors grow wealthy day in and day out for more than 100 years… wouldn’t you want to get in on the action?
The proof is in the reliable returns – steady appreciation plus dividends – that utility stocks have generated for decades. In fact, they’ve left Wall Street’s traditional growth indexes – and the stocks your broker usually wants you to buy – far behind.
Compare utility stocks to the most hyped index of all, the technology-laden NASDAQ. Since the NASDAQ was founded in 1971, it’s produced some of the most exciting names on the planet, from Microsoft and Intel to Google.
Had you invested in the average NASDAQ stock since 1971, you would have realized a return of about 2400%. While that’s not too shabby, you would have had to ride out some devastating drops to get there, such as -30.6% a year from 2000 through 2002.
Worse, many NASDAQ stocks disappeared altogether along the way. Not only would you have earned zero dividends, you’d have lost your initial investment as well. Is being left holding a totally empty bag your idea of a reliable way to build wealth?
In contrast, all members of the S&P Utilities Index in 1971 are still household names today. Few investors in the past 35 years have even remotely considered them to be growth stocks.
Nonetheless, the boring S&P Utilities have beaten the flashy NASDAQ handily since 1971 – combining appreciation of 2000% with steady annual dividends near double-digits.
Now, if the S&P Utilities beat the NASDAQ... and, as you've seen elsewhere in this Special Issue, Utility Forecaster portfolios regularly trounce the S&P Utilities... where do you want to put your money?
Source Excerpted from : Utility and Income
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