Natural gas is a cleaner source of energy than other fossil fuels, such as oil and coal, and produces about 30% less carbon dioxide than petroleum and about 45% less than coal. Many distributors of natural gas and propane pay fairly high yields.
The highest yielding gas stock is Amerigas Partners ( APU ), which is a Pennsylvania based retail propane distributor. It has about 1.3 million commercial, residential, industrial, and agricultural customers. The stock has a P/E of 9, a PEG of 2.7, and a yield of 8.7%.
One of the highest yielding natural gas stocks is National Grid plc ( NGG ) operates gas distribution networks in Great Britain, New York, Massachusetts, New Hampshire, and Rhode Island. They are also involved in electrical generation and distribution. The stock has a PE of 5, a PEG of 1.56, and pays a yield of 6.1%.
Atlanta Gas Light ( ATG ) is an Atlanta based distributor of natural gas in Florida, Georgia, Maryland, New Jersey, Tennessee, and Virginia. The stock has a forward P/E of 13, a PEG of 2.28 , and a yield of 5%.
Atmos Energy Corp ( ATO ) is a Houston, Texas based distributor of natural gas. The stock has a forward P/E of 14 , a PEG of 2.8, and a yield of 5.1%.
Nicor Inc ( GAS ) is in the business of natural gas distribution and shipping. The stock has a forward P/E of 13, a PEG of 3.64, and a yield of 4.8%.
Laclede Group Inc ( LG ) one of the original Dow Jones Industrial Average stocks, is a distributor of natural gas. The stock has a forward P/E of 10, a PEG of 4.52, and a yield of 3.9%.
WGL Holdings Inc ( WGL ) is a Washington, DC based natural gas distributor. The stock has a forward P/E of 13 , a PEG of 3.46 , and a yield of 4.2%.
Piedmont Natural Gas ( PNY ) is a Charlotte, North Carolina based distributor of natural gas. The stock has a forward P/E of 16, a PEG of 2.9, and a yield of 4.2%.
You can download, sort, and change an Excel list of over 20 dividend paying gas utilities at WallStreetNewsNetwork.com.
If you like high yield utility stocks, you should also check out top yielding electric utilities and stocks with tax free dividends.
Author does not own any of the above.
By Fred Fuld at Stockerblog.com