Wednesday, July 21, 2010

Highest Yielding Natural Gas Stocks: They're a Gas, Gas, Gas!

Income investors like natural gas stocks for several reasons. First, they pay a decent dividend with over 15 paying more than 4%. Second, they provide diversification from electric utilities. The average price to earnings ratio for all these stocks is less than 15. And in terms of gas stocks, in addition to natural gas companies, investors can also choose propane distributors.

There are plenty of natural gas and propane gas utilities available to invest in. has just updated their list of about 25 gas utilities with yields ranging from 2% to above 8%. Here are some examples.

Amerigas Partners (APU) PE: 12.35 forward PE: 13.6 PEG: 2.5 yield: 6.9%

Spectra Energy (SE) PE: 14.53 forward PE: 11.8 PEG: 1.3 yield: 5.0%

Transcanada Corp (TRP) PE: 18.42 forward PE: 14.4 PEG: 3.4 yield: 4.6%

Northwest Nat Gas (NWN) PE: 16.24 forward PE: 15.4 PEG: 3.4 yield: 3.8%

You might also consider investing in electric utilities, which also pay fairly high yields, many in excess of 5%.

To see a list of 25 gas utilities in the form of a free downloadable Excel database of natural gas and propane stocks, eight of which yield more than 5%, go to

Author does not own any of the above.


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