Defensive Utilities

A strategy for investors seeking income and growth from a portfolio of systematically selected utility stocks.  

Strategy Description


Our Defensive Utilities stock model combines the traditional dividend power of utilities with a powerful growth ranking system.

This system includes evaluating the companies’ fundamentals which allows the model to recommend an optimum time to buy or sell the stock.  Also included in the model are rules to minimize correlation among the portfolio holdings.

The model is designed to protect capital during bear markets.  Additionally, the model looks beyond just dividend yield and considers capital growth as well.   


Sharpe Ratio – the average return earned in excess of the risk-free rate.  A higher Sharpe Ration is better

Risk-Free Rate – represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.

Sortino Ratio – another measure of risk that takes into account the downside deviation of the asset.  A higher Sortino Ratio is better.

What is Drawdown?

Drawdown is the measure from the highest high to the lowest low or peak to trough during a specific time period.  It is an important measurement of risk.  A larger drawdown requires a more significant increase in the security to recover.

Volatility measures the change in the price of an investment.  The higher the volatility, the higher the difference between the high and the low of an investment’s price.

The 12 Month Rolling ROR is the compound rate of return for the last 12 months.  The rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.

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