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Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks that year. While growth stocks have retaken the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income.

American Electric Power is one of the largest regulated utilities in the United States, providing electricity generation, transmission, and distribution to more than 5 million customers in 11 states. About 42% of AEP's of capacity is coal, with the remainder from a mix of natural gas (27%), renewable energy and hydro (21%), nuclear (8%), and demand response (2%). Vertically integrated utilities, transmission and distribution, and generation and marketing support earnings.

Consolidated Edison serves 3 million electric customers, 1.1 million gas customers, and 1800 steam customers throughout the New York region. ED provides a wide range of energy-related products and services through the following subsidiaries: Consolidated Edison Co. of New York (CECONY), a regulated utility providing electricity, gas and steam in New York City and Westchester County; Orange and Rockland Utilities, a utility serving customers in southeastern New York State, northern New Jersey, and northeastern Pennsylvania; Con Edison Solutions, a retail energy supply and services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, which owns and operates generating plants and participates in other infrastructure projects; and Con Ed Transmission, a FERC-regulated electric and natural gas utility. The company employs approximately 15,000 people. With the sale of Con Edison Clean Energy Businesses, Con Ed has become a pure-play regulated utility with over 90% of assets at CECONY, which also accounts for 92% of total revenues. The company has little generating power except for steam production, and purchases and transports gas from as far away as Canada and the Gulf of Mexico. In 2023, gas accounted for 21% of revenues and electricity accounted for about 74%, with about half of electric revenues from businesses and municipal customers. ED is increasing investment in solar and wind generation, and is targeting net-zero emissions by 2040.

As stock prices continue to rise and the valuation band for stocks is stretched further, insider-sentiment data from Vickers Stock Research continues to show that corporate executives, directors, and beneficial owners are increasingly defensive. Is it time to run for exits? Likely no. But stock prices won't go up forever, so a sense of caution does seem to be warranted. And that is what insiders are clearly telling us.