Buy This Utility

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Today, I am recommending purchasing shares in the electric and gas utility Black Hills Corporation (BKH).

The company has achieved consistent growth in recent years, and this trend should continue as the company adds to its regulated rate base. The company is also anticipating favorable rate actions from state regulators.

The shares offer an attractive 3.8% dividend yield and will likely feature consistent dividend growth in the future.

Finally, since BKH is a utility that receives a regulated after-tax return on its assets, a potential corporate tax hike will have no impact on its earnings.

I will have more details in tomorrow’s monthly issue.

Buy BKH under $62. My target is $67.

If you are an Inner Circle subscriber who is following the Model Portfolio, buy a 5% position in BKH for the Value Sector.