My Favorite Utility Stock to Buy Now

by Sam Collins | September 13, 2013 1:45 am

Dominion Resources (D[1]) — This stock was included on my list of the “Top 6 Stocks to Buy for September,”[2] with it opening the month at $58.89. (See my analysis here[3].)

Following yesterday’s Daily Market Outlook[4], in which I suggested investors buy utilities, a number of readers asked me to name my favorite utility stock, and that is Dominion Resources.

On the opening Wednesday, the stock led the entire S&P 500, rising almost 6% on huge volume. It broke from a bullish triangle, with support at its 50-day moving average at $58, and gapped to an intraday high of $61.94. It closed up 2% on the day.

The reason for the jump was the approval from the U.S. Department of Energy (DOE) for natural gas exports to non-Free Trade Agreement countries. This approval allows Dominion to export 770 million cubic feet of natural gas a day for 20 years. No one has yet calculated the benefit in terms of earnings, but needless to say, this is a very big deal.

The stock should be bought for a combination of growth and income.

D Stock
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Chart Key[5]

  1. D:
  2. “Top 6 Stocks to Buy for September,”:
  3. here:
  4. yesterday’s Daily Market Outlook:
  5. [Image]:

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