I agree that 4% return is good, but with the changes coming in the way dividends are taxed, it becomes less attractive. That said, I still own about 200k of XLU (so who am I to talk). Did move 80,000$ out of this into ATAX. It pays 8% and is not taxed - just put some in there for diversification purposes. The New Zealand composite ETF is another pretty good one, as well as the NZ telephone company (7.5% div). But yes, XLU is a very good buy - esp considering dividends should be going up for the next several years.
You make some good points. The dividend hike may very well occur, and the market is obviously betting on it. There are no good "buys" in equities really, maybe its planned to cause economic calamity and more central government strenght? You can bet our new President won't do anything about, its in the card. But as for me, I have a stop loss set which may well kick in on XLU. This is the only US equity position I have, the rest being emerging markets. EMs may be the only place going forward with real growth of any kind and I think is the best place to be, they will do relatively better than any of the developed world markets. I am also shorting Europe - there is ZERO reason that they should be doing better than Asia this year, esp since they will be in recession next year and we are not far behind. Oh, and also am in Gold. You don't want to try and get in later when massive inflation kicks in from all the money printing.