I am a LT investor. I am curious of the overall sentitment of other LT investors regarding adding new money into SO.
I understand the concept of dollar cost averaging so please do not go there. I am more interested in those who have been LT investors of SO for 10+ years or more and if you continue to invest or if you are holding for a pullback?
Also if you are willing to share are you investing:
1 monthly via DRIP, or quarterly etc.
2 and what other utilities are you actively investing in for LT.
I will be and it will be a core LT holding, at least that's the plan. I am waiting for a $40-$41 pullback and then I am in. Right now I have been putting a lot of money into an REIT, (NCT), because I feel strongly I will continue to make a lot with it but SO is just the kind of stock I want for long term stability and dividends. I was a holder of NGG but I sold it in anticipation of replacing it with SO. It's really not one of those sectors that I want or need to own two companies like I do with VZ and T.
Ive never bought a utility in my life but Im thinking about buying SO.
Long term track record is outstanding. And the dividend bets the heck out of money market accounts.
Hard to say on the timing. Im going to go in with a modest position with dividend reinvestment and then if it drops a few points, buy more.
Im looking to hold this for the next 10-20+ years so timing my buy isnt the most important thing.
I have far too much money sitting on the sidelines earning less than 1%.
And endgames coming in the next month or two for 4 of my stocks. Have to do something with the money.
In the past, Ive always swung for the fences.Now that Im older, 8-12% total return over the next 20 years sounds pretty darn good. And it seems SO has provided that in the past.
Some elected lady named Twinkle fights for AL Power in AL. And I pay AL Power every month.
All of the above being said, Ive never invested in a utility in my life.
Your thought process seems pretty logical to me. Especially if you plan to hold for next 10 years or longer. They say the market is going to take a move back for around 10% sometime over the next couple of months. I do not really know and no one really knows but the market does go up and then pull back and then at some point start to go up. I do not try to time my entries I just try to look at what the market is doing and buy when I see an opportunity. Maybe you want to put some in now say 50% of what you plan to invest in SO and then buy more on the dips. I always try to hold between 8 to 12 % of my portofolio in cash to be able to buy my long term holding stocks when the market takes a correction. Just my way of doing things. Sure has worked nice for me though
However I am not sure if 8-12% total return. I do not plan on that and if I get it I am very happy I plan on 5 to 7%. I understand the marke hopefully returns and total return should be higher. But I plan for less and and very happy with more. I have several utilities and have had for years. I am in SO and D they have both done very well for me. I cannot speak to future but hopefully over the long term history repeats. I believe the key is do your research on those stocks and industries, read about the company, the senior management of the company, what future plans look like. what the debt ratio is, what the return on equity is, how many years has the dividended been raised.
You say you have some time on your side. For example if you do your research and pick 5 stocks and over the years with dividend re-investment you can hold say 5,000 shares of each of those 5, you will have 25,000 shares total if each is paying say 2.00 per share your making $50,000 just on dividends, that is not a bad paycheck to receive. Hoepfully over time your dividends will go up so you have a chance to double that amount over the next 20 years. I use this as an example, maybe 10 stocks each with 2500 shares is better for you but hopefully you get my idea.
Then buy and re-invest and buy and re-invest and watch your portofolio grow. Don't swing for the fences, 4 singles scores a run just as a homerun does. Much easier to get those singles then the home run. Patience and good research is what makes money for individuals in the market.
Sentiment: Strong Buy
17% of our portfolio is in SO. 12% is in DUK. No other power companies at this time. I have invested, and reinvested dividends since 1995. I have given shares away to grandchildren at Christmas. I have recently bought 550 shares on each pullback. In lots of 100, then 100 then 350. I'm done for now.
I am taking a very serious look at dumping DUK. I don't see any advantage for shareholders after the DUK/PGN deal is done.
Bought KOG at $7.04, $8.90 and $9.00. Bakken is the great oil hope!
The rate of return is not good at this level. I know the share price will drop, maybe as much as 10%, when Bernanke stops artificially suppressing interest rates.
I have over 10% of my portfolio in SO which is against my rules, getting over 6% return from the money that I invested.
Look at a different sector like pielines such EPD or KMP but there is a caveat - they are income tax headaches and best not be done in IRAs.
long term investor of SO for more tha 10 years. Reinvest dividends quarterly. Holding over 10K shares and happy with investment. However it looks like stock is moving downward at this time, probably back to 39-40 dollar range. Just my quess and nothing but instinct to back up my estimate.
When i retired i bought 1000 shares to use the div. to pay my power bill. It has worked for 8yrs and now i could sell and pay it for the rest of my life. But ill just hold and let it pay my sons power bill someday.
no matter what happens to an economy people will allways need utillitys and as that economy grows and the population grows so will the demand. you cant lose woth so or any other well managed utillitys stock
Sentiment: Strong Buy
Just entering retirement and have started building a position in SO (no DRIP - hate fractional share accounting); also a customer. Like what I see re: commitment to nuclear, converting several plants to NG and closing several coal plants or relegating them to peaking plants.
SO is my largest utility holding. I also own Duke(DUK), Progress(PGN), Scana(SCG) and American Electric Power(AEP). Once Progress and Duke complete their merger it will become my largest utility.
I think all of them are over bought and am not putting new money into any of them. I'm not selling either, I invest for dividends, not capital gains.
Right now, new money is going into leveraged municipal bond CEF's
(MUI, NKG) and a pipeline MLP (NS) which also owns asphalt refineries in New Jersey and Savannah
I'm a long term Ga Power customer so I am familiar with the company. Stock is at a near all time high. Track record is great. Look at the max charts tracking price.
Short term, stock market punishes stocks that rise above the indexes. 2012 may be a retrenchment in the short term. If it goes back below 40 it will be a great buy. I'm not adding to my position at this time!
I have had SO for over ten years as a sort of a baseline in my portfolio and have been selling call options off and on against the stock over that period. I sell reasonably out of the money calls and merely let them mature and that gives me a bit of extra income on top of the dividend. I got knicked over the past three months due to the runup but I believe we have a new trading range in the upper thirties to the mid to upper forties and will likely sell calls at the top of that range. I could be surprised though because money is moving to secure (relatively?) income generating vehicles and SO is one of them. I will likely hold the stock 'forever'. I would add to the position anywhere under forty four and definitely at forty. I would not be surprised if it broke forty again but if it does I will merely wait for it to run up again and take the dividend.