Featured Content



Still worried about the economy? Become an elite charter member of George's DAILY PROFITS and you could... TRIPLE YOUR MONEY IN A MONTH! George gave us the $2.8-billion IT infrastructure provider, up 4,745.20%; the $1.8-billion advertising agency, up 1,295.44%; and the $762 million business software company, up 1,213.19%. Only charter members can follow George daily. Learn how here!

Beating the Stock Market with Utilities


Beating the Stock MarketNo business is recession-proof, but there are lots that are recession-resistant. In terms of your stock market portfolio strategy, it certainly pays to have a few names that fit into the recession-resistant category. The U.S. economy typically experiences a recession about once every five or six years.

You might consider a utility company or possibly even a brewery as being a recession-resistant business. The Southern Company (NYSE/SO) stands out in the utility sector as having a great long-term track record on the stock market. For sure, the company isn’t growing as fast as an Internet start-up, but what it does offer is consistency of revenue and earnings growth—even during recessions. The company’s stock market chart appears below:

SO southern co stock market chart

Chart courtesy of www.StockCharts.com

A company doesn’t have to be large to be a recession-resistant business. Certainly a large-cap company has more economies of scale to weather the storm, but what’s more important is the kind of business a company is in and how it is managed.

AZZ Incorporated (NYSE/AZZ) is a small-cap company that manufactures and sells electrical components to utility companies. (See “The Debt Demon Lurks—It’s Still Out There Waiting to Strike.”) On the stock market, the company’s share price has been a solid winner for five years straight. It recently split its stock two-for-one and its shares took off. AZZ’s stock market chart is below:

AZZ Azz, Inc stock market chart

Chart courtesy of www.StockCharts.com

A lot of people expect the U.S. economy to experience another technical recession next year or in 2014. It’s a good assumption to plan for because of the country’s track record. From the investor’s point of view, part of the attractiveness of a recession-resistant business is dividend income. I think dividends will be crucial over the next couple of years, because I don’t expect much in the way of capital gains.

Over the last 10 years, the Utilities Select Sector SPDR (NYSEArca/XLU), an exchange-traded fund (ETF) that holds most of the biggest utility companies in the U.S., has been far more volatile than Southern Company. A lot of stock market investors might be put off by the utilities sector as not offering enough growth. Pull up a long-term chart on Consolidated Edison, Inc. (NYSE/ED) and factor in dividends, and minds will change quickly.

Premium Content

Secret "New Swiss Bank Account" Safest Way to 44% Returns


It's the safest—but, until now, completely ignored—place for your money. Because these elite "bank accounts" pay guaranteed 5% cash payments per annum on top of returns on capital exceeding 44%... Learn all about them here.

About the Author, Browse Mitchell Clark's Articles

Mitchell Clark is a senior editor at Lombardi Financial, specializing in large- and micro-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, including Micro-Cap Reporter, Income for Life, Biotech Breakthrough Stock Report, and 100% Letter. Mitchell has been with Lombardi Financial for 17 years. He won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was a stockbroker for a large investment bank. In the... Read Full Bio »

Exclusive profit Confidential Presentation

Secret Retirement Plan Pays Up to $12,160 a Month?

Secret Retirement Plan Pays Up to $12,160 a Month?

A select group of Americans are retiring with a little-known retirement plan whose advertisement by its issuers is censored by Congress... Yet this plan enables Americans to potentially collect up to $12,160 in monthly income that's sponsored entirely by large-cap American companies. These secret Sponsored Retirement Plans are trumping social security by up to 10 times. And unlike mainstream retirement plans like 401(k)s or IRAs, SRPs are ideal for people who want to start with very little money. You could begin your SRP with as little as $10, $50, $100 or $400. To see real-life stories of folks who've built hundred-thousand-dollar portfolios thanks to SRPs and how to get your own plan started today, click here now!