Thursday, February 07, 2008

Utilities Look Undervalued Here

Slowing growth for the U.S. is hitting the stocks of electric utlities and telecommunications companies hard. These sectors pay high dividends (3-5%) relative to treasury bonds and cash, providing a safer alternative to riskier parts of the stock market.

Some suggestions for this space include:
Electric Utlities - SCANA (SCG) and El Paso Electric (EE)
Telecommunications - Verizon (VZ) and AT&T (T)

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