Long-term investing requires a clear strategy. The strategy should not be affected by short-term price movements or short-term events. Rather, one should have a clear understanding of where a business or sector is heading 10 or 15 years down the line. On the basis of such a long view, investors can then start picking sectors and stocks. The utility sector is a pretty interesting one from a long-term perspective. It is undergoing significant transformation due to the increasing importance of sustainability and ESG standards. Renewable energy is now a part of every major utility company’s power generation mix. At the same time, many underlying characteristics of utility stocks continue to remain the same. They are slow-growth businesses that pay a good dividend. The demand for energy continues to be stable in spite of financial crises and pandemics. Investors looking for the best utility stocks for long-term investing will think about these factors before making a decision.
CMS Energy Corporation Announces Positive Q1 2021 Earnings Results
On 29th April 2021, CMS Energy Corporation announced its first-quarter 2021 earnings numbers. The results were positive as revenue rose from $1.8 billion in Q12020 to over $2 billion. Net income rose significantly from $243 million in Q12020 to $349 million. Net income per share on a diluted basis improved from $0.85 in Q12020 to $1.21. Company CEO Garrick Rochow said that CMS Energy was recognized as a top-tier ESG performer and that the company would continue on its path of increasing the share of renewable energy in its overall portfolio. If you are thinking of buying utility stocks with good ESG credentials, then CMS Energy could be an option.
CMS Energy has charted out an investment plan for going net-zero carbon by 2040 and net-zero methane by 2030. The company is also working on incorporating more automation and analytics as part of its digital strategy.