In North America our society runs on the use of energy and in particular electricity. The wonderful thing about hydro from an investor point of view is after the capital costs of building the project, the cost to maintain the facility is low and the income is high. The water flows, goes over the dam, the water also turns the turbines beside or inside the dam which makes the electricity. The water should turn the turbines for the next 100 years plus. The only things to worry about is too much water or too little water. However given river management systems, there is a high degree of probability there will be enough water flow for the next 100 years. As long as there is enough water the electricity is produced and everyone in an urban setting needs hydro to live. .

Linking to dividend producing stocks, the investor owned utility is a classical case of what dividend buyers are aiming for. In the case of the dam and the turbines, the competition is not building another dam or the utility has a monopoly like conditions. As long as the regional economy is reasonably stable, electricity is needed or there is a demand for the product. There are alternatives – people can use less by conservation but there will be a demand for electricity. Even though the regulators will help keep competition out, the management needs to be watched to keep its costs down. The dividend should be safe even as the economy changes. When companies have similar conditions, those are the type you can invest in and review at your leisure.

There are more questions than answers, till the next time – to raising questions