When the stock market drops or gets choppy, there is a flight to conservative high income investments. Recently, I had written an article about monthly dividend stocks, although many of them might be considered risky. Electric utilities, in spite of the fact that a few have run into rough patches, are considered by many investors to be safer than other stocks. Although consumers may cut back on buying new clothing or consumer products or go out to eat less during a recession, most people will continue to pay their electric utility bill.
Here are some of the highest yielding electric utility stocks.
One of the highest yielding utilities is Great Plains Energy Inc. (GXP), the Kansas City Missouri based utility which yields 6.5%. Their electrical generation comes from coal, nuclear, natural gas, oil, and wind power. They serve western Missouri and eastern Kansas. The stock has a PE of 14 and a PEG of 2.7.
Another high yielding utility is Progress Energy Inc. (PGN), which yields slightly less than 6%. This Raleigh, North Carolina utility serves North Carolina, South Carolina, and parts of Florida. 30% of their electrical generation comes from coal, and 35% from oil. The stock has a PE of 21 and a PEG of 2.28.
Pinnacle West Capital Corp. (PNW), the southwestern utility, has a yield of 5.9%. This Phoenix, Arizona based company generates its electricity from coal, natural gas, oil, nuclear, and solar power. The stock has a PE of 12 and a PEG of 3.75.
Empire District Electric Co. (EDE) is based in Joplin, Missouri and yields 5.9%. They serve Missouri, Kansas, Oklahoma, and Arkansas. 43% of their electrical generation comes from coal, and 26% from oil. The stock has a PE of 20 and a PEG of 2.57.
Consolidated Edison Inc. (ED) yields 5.7% and serves parts of New York, New Jersey Pennsylvania. The stock has a PE of 12 and a PEG of 3.94.
You can download an Excel spreadsheet of all the electric utilities and their dividends, which you can sort, change, and add to, at WallStreetNewsNetwork.com.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com
One of the highest yielding utilities is Great Plains Energy Inc. (GXP), the Kansas City Missouri based utility which yields 6.5%. Their electrical generation comes from coal, nuclear, natural gas, oil, and wind power. They serve western Missouri and eastern Kansas. The stock has a PE of 14 and a PEG of 2.7.
Another high yielding utility is Progress Energy Inc. (PGN), which yields slightly less than 6%. This Raleigh, North Carolina utility serves North Carolina, South Carolina, and parts of Florida. 30% of their electrical generation comes from coal, and 35% from oil. The stock has a PE of 21 and a PEG of 2.28.
Pinnacle West Capital Corp. (PNW), the southwestern utility, has a yield of 5.9%. This Phoenix, Arizona based company generates its electricity from coal, natural gas, oil, nuclear, and solar power. The stock has a PE of 12 and a PEG of 3.75.
Empire District Electric Co. (EDE) is based in Joplin, Missouri and yields 5.9%. They serve Missouri, Kansas, Oklahoma, and Arkansas. 43% of their electrical generation comes from coal, and 26% from oil. The stock has a PE of 20 and a PEG of 2.57.
Consolidated Edison Inc. (ED) yields 5.7% and serves parts of New York, New Jersey Pennsylvania. The stock has a PE of 12 and a PEG of 3.94.
You can download an Excel spreadsheet of all the electric utilities and their dividends, which you can sort, change, and add to, at WallStreetNewsNetwork.com.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com
2 Comments:
On utility stocks, one inportant ratio to look at is what I call their "dividend coverage ratio." This is computed by taking their dividend divided by their net income. I personally (more conservative) like ratios below 80%, 85% tops. Anything higher and the dividend is priced to perfection and any blip on the commodity pricing side or from an operational standpoint would impair the dividend. Just my 2 cents.
I have gotten hammered in Pinacle West. Still I am holding it for the nuclear power play. Sticking with the same theme I am watching the ETF NLR. Added some SXRZF this week at $4.54. Up off the near $3.50 bottom. The uranium and forest products seem to be the only 2 commodities not to have participated in this commodities run so far. I own The AES-PrC for yield. It is well past it's call date making it a play while selling below par. The AES common is doing quite well. Comming off the mat from the Venezuelan fiasco and cherry picking projects in the Emerging markets. AES does alot internationally in LNG power generation projects. I also like Sierra Pacific for a run back above $20. The dividend is crummy but as the company focuses on improving it's #s we should see some increases. Also off the carpet and just reporting horrible #s is CMS. The dividend is puny but it could easily run back up from $14 to $19 and increase dividends . CMS divested itself of it's nuke so you no longer have that advantage/or disadvantage. For the more adventuresome the US utility owned and listed in Canada Atlantic Power/ATPWF has a great payout even after being shaved by the Gov't of Canada tax. After tax on a portion of the dividend that is not bond interest you get a 9.7% yld. Great for tax sheltered accounts. Bond interest does not get the US 15% tax treatment. Another which has done very well and for obvious reasons is Great Lakes Hydro/GLHIF. GLHIF is subject to the full 15% canadian tax but you can get a foreign tax credit for it. Yielding 7%/5.9% it is selling near a 52 week low. As much as the "fuel" source for this generation is low cost there are some complicated tax issues current and pending with Canadian Stapled and Trust Shares or units. This may be even more so with GLHIF as the Gov't seeks to pass along the lower cost of generation to the consumers. This makes rate enhancements against fossil fuel competitors more difficult to gain approval. Eso, TimoDOZ
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