Under the name of utilities, a series of listed companies that are closely related are called the electricity and energy services in general. They are formed as an essential and priority sector in all equity markets. Both national and outside our borders. And that in a certain way, you must have their values to make up any investment portfolio. Whatever the profile that as a small and medium investor you present: moderate, aggressive or even intermediate.
Utilities stand out because they are strongly consolidated values in their respective business areas. With great benefits on your business accounts and with volatility intentions. The strong fluctuations in their prices are not exactly one of its main characteristics. You can perfectly open positions in their values because you will not have many negative surprises during the months of the year.
In addition, they present other peculiarities that you will get to know little by little. In case at any time you decide to include some of their securities in your investment portfolio. You will have many sources of analysis at all times since they are present in the coverage developed by brokers and other financial intermediaries. Of course, you shouldn't expect big appreciations from these companies. But at least you will be calmer while you have open positions in the utilities.
Utilities: where to go?
If your intention is to buy shares of these characteristics during the next few weeks, you should be very clear about where you need to go to formalize the acquisitions. All the companies of the national electricity sector are integrated. The offer is very wide and diversified to satisfy any demand on your part. Endesa, Iberdrola, Enagás or Red Eléctrica Española are some of the most important in the national stock market.
Other segments of this business activity are also present. As for example, gas suppliers. With a proposal as powerful as Natural Gas. Even the oil, with Repsol at the helm. They are well known values by all investor profiles and from this point they will give you an added security value.
Another of their main contributions is that they generate business lines that bring great benefits to their companies. And as a consequence of them, they are very generous when it comes to distributing dividends among their shareholders. Not surprisingly, they stand out as the companies that provide the highest performance for this concept. With a return on savings that varies from 4% to 8%. Most of the time by means of a semi-annual or yearly fixed payment. Influencing your earnings to be higher through this strategy so common in the world of equities.
What do these companies offer you?
Utilities provide you with a series of benefits that can be very valuable for your regular investments. In the beginning, stability to your investment portfolio. Don't expect big things, but don't expect big disasters in your quotes either.
In a way, it is a very particular strategy of creating a savings bag looking forward to the next few years. These are the values where the risks will be more controlled. Above other sectors of equities. From this aspect you should be very calm if you decide to take the step and buy securities of any of these companies that are listed on the stock market. Surely in this aspect they will not disappoint you in the least.
It will be a complement that you should not miss in any investment. Whatever profile you present as a small medium investor. In any case, they are securities that will not be used in any way to carry out speculative operations. The reason is very simple. It is because the differences between their highest and lowest prices in the same trading session are not very important. With deviations rarely exceeding 2%Not even adjusting your purchase and sale prices will you be able to achieve these objectives.
Intended for the long term
You also have to take into account the term of permanence of these values. They are not very prone for short periods. But it is in the middle and long where they achieve their greatest effectiveness in terms of the profitability of their actions. Not a few older investors have deposited their life savings with utilities. In some cases even with a view to your retirement age. Something that, on the other hand, they cannot do through other equity sectors.
You have a high possibility that if you keep these securities in your investment portfolio, you can obtain returns of around 10% after several years of trading. Without the need you have to be continually pending your quote. You can expect its results with greater peace of mind than in other proposals in the financial markets. The strategy that you must apply from now on is that simple. It is the best solution you have.
Keys to operate with utilities
Trading with this kind of securities will not require excessive effort. But yes, unless you import behavioral guidelines in investment that help you correctly channel your operations from now on. You may already know most of them, but in other cases they can be very beneficial to you. Do you want to know what your actions should be with these important values in the stock market? Heed these tips because they can be very profitable in your strategies in the financial markets.
- They are very favorable operations so that you can develop your investments long-term. Creating a savings bag that will serve to improve your quality of life or simply to satisfy a whim of yours or your loved ones.
- You have a unique opportunity to get a dual source of income. To the already known of the gains in the evolution of their prices, it is added in this case the collection of dividends. Because in effect, they generate some of the most important returns that you can currently find in equities.
- You can let your prices run Without too many worries because surely at the end of the tour you will have your well-deserved reward. You will only have to define what your objectives will be with regard to these investment approaches.
- If you don't want to focus on just one value, don't worry too much. You can formalize your investment through an investment fund based exclusively on utilities. In this way, you will get diversify your savings in the best possible way. From a single financial product and maybe even with really affordable commissions for your family budget.
- If what you want in a certainly extensive sector and wide in terms of its offer, congratulations, because you have not been confused in choice. You will have a wide range of listed companies that meet these requirements. Even through various proposals, if this is your initial wish.
- These are models of very stable business that typically make a profit every year. It will be an additional guarantee for when you open positions in one of the many stocks that have these well-defined characteristics. At any time of the year you can start these movements because they are not cyclical values.
- The risk you have that some of these companies fail is practically non-existent. Instead, on the contrary, they are usually subject to corporate movements that are usually very interesting for your interests. It is enough to remember what happened with Endesa just a few years ago. Where its investors doubled their profits in a few months of trading.
- Spain has one of the most complete offerings of utility securities in all financial markets. Covering all business segments and market niches. You will not have to divert your savings to other international financial markets. You can cover your demand here, without any problem.
Pros in these investments
Going for utilities in equities can bring you many benefits. But you need to know them. With no other objective than to optimize the operations that you develop from now on. Basically they will be the following that we expose you below.
- You have a lot more to gain than to lose, since its risks are clearly limited in almost all its values.
- Although they are minimal, in the long term the return to your savings will be largely insured. To which you can add the dividends that are distributed to you every year.
- His behavior in the worst moments of the stock market is always better than the other sectors. Even with a very appreciable difference in their percentages.
- In some situations they can become refuge values. Where thousands and thousands of investors are going in search of greater protection for their assets.
- The earnings per share that generate the utilities values constitute one of the most competitive of the equity markets. It will give more confidence to your monetary contributions from the beginning.
- In a way, they have much more to do with the concept of saving than investment. If you are of a rather moderate investor profile, it will be another element to give you confidence in the positions you open.
- And finally, you cannot forget that most of the Managers They use these values to build their model investment portfolios. They are offered to its main clients.