Note from DTA: Since Keith wrote this article, which was only days ago, LNT has pulled back another ~20% and is now sitting at ~$40 per share. Invest — or don’t invest — accordingly.
Millions of investors are worried that there’s more selling ahead.
Odds are, they’re correct.
Still, I’m beginning to get the sense that we’re far more likely near a bottom than a top, which means picking the “right” companies could set you up for once-in-a-lifetime wealth at prices you won’t see again for a generation.
Panic never made anybody a penny.
A Great Choice for Income Starved Investors Who Want to Go Bargain Hunting
Millions of investors are hurting.
Their 401ks have been turned into 201ks for the third time in 20 years, leading many to wonder if there’s any point to investing, given the risks ahead.
Especially now.
I get that.
There’s nothing normal about what’s happening right now, no matter which way you cut it.
We all understand that.
The markets have cratered, stores are straining as people hoard supplies, many folks are worried about their jobs, their retirement, and more.
You’re not alone if you’re one of em.
Look, there’s no question this sucks.The S&P 500 has dropped a staggering 28.85% since February 19th, just over four weeks ago.
Yet, this isn’t the end of the world as you know it.
There are amazing companies making real, serious, life-sustaining products that have been put on sale in recent weeks and that are now trading at truly generational buying points. Some, like The Clorox Co. (NYSE:CLX), we’ve talked about. Some, like the one I’m going to highlight today, we haven’t.
Yet.
I’ve got to believe, based on everything I know, every data point I see, and every bit of market history I’ve studied, that savvy investors will want to be buying something.
The question on many people’s minds is: “What?”
I suggest top tier players only because these are the companies that likely to help defend your money best if there’s more selling ahead and roar out of the ditch fastest when the world beats the coronavirus.
My favorites, bar none, are those making “must-have” products and services the world cannot live without and which will continue to function at a time when the world is highly stressed.
Alliant Energy Corp. (NasdaqGS:LNT) is a terrific example.
Based in Madison, Wisconsin, the company has held up extraordinarily well despite intense selling pressure in recent weeks that’s cratered damn near everything else.
Share prices have dropped from around $60 to just over $50 as I type. Ordinarily, I’d be a bit concerned, but we’re living through anything but ordinary times.
People are going to need power, virus or no virus.
The company’s latest fact book projects $5.2 billion in rate base growth over the next four years which translates to a 10% compound annual growth rate. At the same time, the board of directors has already approved a 7% dividend increase.
I have to imagine those numbers will come under pressure as the coronavirus situation continues, but they’re a great starting point for income starved investors at a critical point in history.
Until next time,
Keith
Source: Total Wealth Research