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 track these stocks at Stockpickr.com. 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