If the wind-down to 2018 was any indication, the New Year may be one that sees investors in survival mode. That makes utilities, which were hit hard by interest rate hikes in 2018, a good choice, suggests Gordon Pape, a Canada-based investment expert and editor of Internet Wealth Builder.
The pace of rate increases should slow, and investors will be more interested in stable companies with limited downside and good yields.
My choice for conservative investors for 2019 is Fortis Inc. (FTS), a Canadian-based electricity and gas producer/distributor. It has total assets of about $50 billion. The corporation's 8,500 employees serve utility customers in five Canadian provinces, nine U.S. states, and three Caribbean countries.
The company is investing heavily in new projects, with $1.5 billion spent in the first six months of the year and another $1.7 billion expected in the second half.
The stock pays $0.425 per month ($1.70 per year) to yield 4% at the current price. The company has raised its dividend every year for more than 40 years, with the next hike expected in the fall.
This is not an exciting company, but it is sound, has a strong U.S. position in Florida and New Mexico, and has a 45-year history of annual dividend increases. It won’t make you a bundle, but you’ll sleep well at night.
