The new utility stock view

Utility stocks are the Shakespeare of the stock market. That’s the common thought. They don’t have big swings in price, are good for dividends, and are safe. Ask most stockbrokers and that’s what you will probably hear. Most think it’s the place to invest in bad economies and for old investors seeking to preserve money.

But is that true?

Utility stocks include several areas that are now, or possibly in the near future, growth industries. That includes ethanol, wind energy, biomass, hydropower, and other forms of green power generation. Each of these and many more are considered new areas of development that could help fuel the economies of multiple states, as well as the overall American economy.

A recent comment by Jim Cramer states

“Wind power is hands-down the best form of renewable energy.”

One of his picks in the wind power arena is Kaydon, which should have wind power account for 20% of the company's sales by 2009 possibly tripling by 2010. Kaydon is currently the market leader in wind-power bearings, with over 50% market share.

Now that is not the kind of growth that sounds stolid or boring. That sounds like big growth. And similar comments can be seen in several energy areas, that formerly were as unexciting as dividend returns (which have been cut by many utilities in recent years). Considering this a new look at utilities is in order.

There may be more reasons to be involved with utility stocks than you ever thought before. But check with a registered professional before making any investment decision.