Tuesday, December 21, 2010

Carl Icahn Pumps Gas

On Monday, it was announced that billionaire trader and investor Carl Icahn increased his stake in Chesapeake Energy (CHK) from from 16.6 million shares to 38.6 million shares, an increase of over 132%. This announcement set off a buying frenzy, causing the stock to jump almost 9% during the day. Of course, Chesapeake trades at 9.8 times forward earnings and is one of the natural gas utilities that pays a yield, giving its investors a payout of 1.3%.

According to WallStreetNewsNetwork.com, there are over 25 natural gas stock paying yields as high as 7%. For example, Atmos Energy Corporation (ATO) is a Dallas, Texas based distributor of natural gas that yields 4.3%. As a matter of fact, the company just increased its payout from $0.335 per quarter to $0.34, and has increased its dividend every year since 1989. The stock has a forward price to earnings ratio of 13 and recently reported a 20.9% increase in revenues.

TransCanada Corp. (TRP) is a Calgary, Alberta based natural gas distributor which has a dividend payout of 4.2%. It is also involved in electrical generation. The stock trades at 16 times forward earnings, with earnings rising for the latest quarter 13.3% on a 3.9% rise in revenues.

Northwest Natural Gas Company (NWN), which distributes gas in Washington, Oregon, and California, yields 3.7%. The stock has a forward PE of 16.7. However, revenues were down 18.6% for the latest quarter.

To see the entire list of natural gas stocks that pay dividends, which can be downloaded, sorted, and updated, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

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