This post is part of Japan: A Special Report for Investors.

"Japan continues to reel from the aftershock of the magnitude 8.9 earthquake and subsequent tsunamis; among the hardest hit is the nuclear industry, which supplies 30 percent of the country's electricity" notes utility sector expert Roger Conrad.

The editor of The Utility Forecaster explains, "There's still a lot we don't know about the crisis. We've seen a massive selloff of in all things nuclear.In my view, this drop will be reversed as the situation calms down.

"Eighteen percent: That's the compound annual rate of return that Enterprise Products Partners (EPD) has showered on investors the past decade," says utility sector specialist Roger Conrad.

The editor of The Utility Forecaster explains, "And with a yield of nearly 6 percent--and a payout growing almost 6 percent yearly--the owner and operator of midstream energy assets is on track for much more.

"Last March, Enterprise Products' legendary founder Dan Duncan passed. The company he left, however, is still growing rapidly, most recently tapping into the boom in natural gas liquids (NGL).

"Over the past decade, Southern Company (SO) has generated a compound annual return of nearly 12 percent," says utility sector expert Roger Conrad.

The editor of The Utility Forecaster explains, "The recent approval of the company's three-year rate hike in Georgia -- source of nearly half its revenue -- is the best possible assurance of a similarly enriching performance for the next 10 years.

"The Georgia Public Service Commission approved 70, 93 and 87 percent of the requested increases for 2011, 2012 and 2013, respectively, as well as a superior 11.15 percent target return on equity.

"Rising demand for electricity has been among the surest trends on which you could bet for the past 100 years;" says utility sector and income expert Roger Conrad.

The contributing editor to Personal Finance explains, "That's money in the bank for the companies that produce and distribute power, including these three Income Portfolio power plays: Dominion Resources (D), Southern Company (SO), and Xcel Energy (XEL).

"After a dip in 2008-09, Americans' power use is climbing again, as more and more electricity-using devices become essential to modern life.

"Economic trends, political winds and investment fads come and go. But companies that grow cash-generating assets build wealth year in, year out," says utility sector specialist Roger Conrad.

The editor of Utility Forecaster adds, "One such stock is MDU Resources (MDU), which I have selected as my 'growth spotlight' stock.

"Including reinvested dividends, MDU Resources has multiplied investors' money 10-fold since my original recommendation in September 1990.

"There's a lot more consolidation ahead for the utility sector. Indeed, deal-making is picking up again," says utility sector specialist Roger Conrad.

The editor of Utility Forecaster explains, "CH Energy Group (CHG), Consolidated Communications (CNSL) and MarkWest Energy Partners LP (MWE) are three stocks that each meet my prime directive for takeover plays: Never buy anything you wouldn't want to own if no deal occurs.

"On the operations front, it's all coming up roses for AT&T, Inc. (T) this year; as such, we have selected the stock as our latest 'Growth Spotlight'," says utility sector specialist Roger Conrad.

The editor of The Utility Forecaster explains, "The company reported a 24.4% boost in fourth-quarter 2009 earnings, with its extremely profitable alliance with Apple activating 3.1 million iPhones."

"No US utility owns more of them than Exelon Corp. (NYSE: EXC), with 17 reactors," explains Roger Conrad, who chose the stock as his latest "growth spotlight" in The Utility Forecaster.

"Carbon free and, above all, paid for, existing nuclear plants are among the most prized assets in the power business.

"Some 80% of company earnings come from its unregulated generation fleet, 90% of which is nuclear. And it's by far the best-positioned US utility to ramp up nuclear output.

"Well managed, dominant firms use downturns to become more powerful -- and that's definitely what Telefonica (NYSE: TEF) is up to," says Roger Conrad in The Utility Forecaster.

"Incorporated in 1924 as a unit of US-based ITT, the Spain-based company now serves 47 million customers in its home country, 150 million in 14 Latin American nations and 45 million elsewhere in Europe.

"Thus far in the recession, diversity and dominance of fast-growing markets has kept Telefonica growing. Overall global customer rolls increased by 15.2% through the third quarter 2008.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

Roger Conrad, the advisory industry's leading authority on the utility sector, looks to American Water Works (NYSE: AWK) as his favorite investment idea for the coming year.

In The Utility Forecaster, he notes, "We now have the opportunity to buy America's premier water utility franchise at a discount to book value." Here, he explains the situation and his bullish outlook.

"In early 2003, Germany's RWE paid a hefty premium for American Water Works. Five years later in April 2008, RWE's new management took a $1 billion write-off to unload the company as an independent company in the U.S.

"As a result, we now have the opportunity to re-enter America's premier water utility franchise at a discount to book value.

"American Water has written off hundreds of millions in good will and overhauled oversight practices that had gone soft under RWE. But with third-quarter earnings surging 11% on a 6.2% revenue jump -- and more the same expected into 2009 -- its fortunes are building again.

"Wealth building is about buying quality on the cheap; and you're not going to find the best water industry stocks at better prices than they sell for now," says utility sector specialist Roger Conrad.

In his The Utility Forecaster, the advisor reviews the three water stocks that earn a place among the core holdings in his growth portfolio: Aqua America (NYSE: WTR), Consolidated Water (NASDAQ: CWCO) and Southwest Water (NASDAQ: SWWC).

"All three of these water stocks posted disappointing first quarter earnings for very different reasons. However, all remain tapped into long-run, wealth-building opportunities.

"Aqua's first quarter results were by no means a disaster. But they lagged both last year's total and Wall Street estimates.

"Management blamed the slowing economy's impact on housing starts in what had been fast-growing systems, rising bad debt, lower commercial sales, delays in fully digesting acquisitions in the South and longer-than-expected timetables needed to win rate increases.

Roger Conrad is among the advisory industry's leading expert on utilities. Here's a look at the latest featured growth stock in his The Utiliity Forecaster -- Entergy Corp. (NYSE: ETR).

"Two years ago, Entergy Corp's regulated utility business was literally in ruins. The core New Orleans subsidiary as well as units in Mississippi, Louisiana and Texas, faced billions in repair costs, and thousands of customers lost their homes.

"However, Entergy stayed on its feet for one reason: a portfolio of well-run nuclear power plants-the nation's second largest-that ran at 90 percent-plus capacity while wholesale electricity prices surged.

"With utility operations recovered, third quarter earnings surged 27.8% and are set for another 20% next year. Management shared some of that bounty by hiking dividends 38.9% in 2007. This year, shareholders will get more cash as well as a 50% interest in the company's five unregulated nuclear plants.

Each year, Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Verizon Communications (NYSE: VZ) is the top conservative pick for 2007 from Roger Conrad. The editor of The Utility Forecaster says, "The company continues to excel in all areas, except the stock market. Verizon Wireless remains the best network in cellular, and continues to prove it every quarter with rising margins, higher sales, and very low customer cancellation rates.

"Now the company is reporting expectation-beating progress with its construction of the nation's best wireline network, which will run fiber optic cable to more than 20 million homes and businesses within the next five years. The price tag is not inconsequential at $18 billion. But the company has been able to finance it with cash flow, even while reducing debt.

"Critics continue to focus on the loss of local copper phone connections at the company to wireless and cable television rivals. That's like faulting a Super Bowl champion because its punter doesn't see enough action. Buy VZ, which yields a little less than 5%, up to 38."

To see Roger's favorite speculative idea for 2007, click here.

Each year, Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Stocks Report.

Precision Drilling (NYSE: PDS) is the favorite speculative stock for 2007 from utility specialist Roger Conrad. The editor of The Utility Forecaster notes, "Precision converted to a Canadian income trust last year and its shares were immediately off to the races, riding enthusiasm about its big dividend and growth of activity in North American drilling.

"The second half of 2006 has been 180 degrees different, due to a slump in energy patch activity in Canada and the government's proposal to tax income trusts beginning in 2011. As a result, the stock is yielding 13%, a level usually reserved for Wall Street basket cases.

"Precision, however, is far from it, holding more than 40% of the fast-growing deep drilling market in Canada and rapidly expanding on both sides of the border. Cash flow continues to cover the dividend by a generous margin, and with energy patch activity picking up in North America at the end of 2006, it should do so by an even wider margin in 2007.

"Being taxed again as a corporation would almost surely mean a lower dividend. But in the meantime, the trust will continue to pay out big, and the shares should benefit from faster energy patch activity.

"Also, the income trust tax changes are priced in, so there's no real additional risk on that front, and a possibility the ultimate change by the government will be considerably more favorable. A further slowdown in energy patch activity is also priced in to the shares, so all the potential surprises are positive and will bring upside. Buy Precision up to 30."

To see Roger's favorite conservative stock for 2007, click here.