Consolidated Edison (ED) or Southern Co. (SO) are examples of these. The 4.7% income on the treasury looks good, but you pay more tax on treasury income that is only abopuit 3.1% net after taxes. ED has a 17 P/E and it now has a 4.9% dividend afterthey hiked dividend. The after-tax yield on this is 4.1% plus you get the chance to see another dividend hike and you get upside if stocks go up. Utilities trade up as rates come down because of longer-term leverage to rates. SO stock has roughly a 4.3% yield and also trades at just over 17 times earnings.
Jon C. Ogg
January 19, 2007
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
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