Monday, July 19, 2010
High Yield Electric Utilities
We are having a long hot summer and people are running their air conditioners like crazy, using a lot of electricity. So what's the best way to make money off these hot customers? The best way is through electric utility stocks, and according to WallStreetNewsNetwork.com, there are more than 25 with yields above 5% this month. In addition, these companies can provide relative safety, security, and stability. In the past, utilities have paid favorable dividends for many years with low volatility.
Here are some examples of utility stocks with CD beating yields.
FirstEnergy Corp. (FE) has a very reasonable trailing PE ratio of 10.3, and forward PE of 9.0. However, the price earnings growth ratio is way high at 4.82. But the yield of 6.4% sort of makes up for it.
Duke Energy Corporation (DUK) yields 6.1%, has a trailing PE of 17.9, and forward PE of 12.2. The price earnings growth ratio is 2.81.
Westar Energy, Inc. (WR) also pays a decent yield of 5.8%. It has a trailing PE of 14.9, and forward PE of 12.2. The price earnings growth ratio is a favorable 1.36.
For more top yielding stocks, you can access a free downloadable Excel database of high yield electric utility stocks, which you can add to, change, and sort, at WSNN.com.
Author does not own any of the above.