From the time they were kids, today’s retirees have learned the same basics about investing in utilities: They may not grow any faster than the economy, but you can always count on them to pay hefty stock dividends and reliably cover the interest on their bonds.
Now solar power is posing a threat to that basic paradigm—not big enough to worry seniors already relying in part on utility stocks for income but serious enough that baby boomers and new retirees should keep it in the back of their mind, according to some bond analysts who cover the utility sector.
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