Saturday, May 28, 2011

High Yield Electric Utilities: Check Out the Dividend Increasers

If dividend increases are indicative of a strong industry, then electric utilities are in great shape. Portland General Electric Company (POR) recently announced a 2 percent increase in its quarterly common stock dividend to 26.5 cents per share, up from 26.0 cents per share for the previous quarter. DTE Energy (DTE) also declared a 5% increase in its dividend payout. In addition, Chesapeake Utilities Corporation (CPK) raised its quarterly cash dividend by 4.6%.

Summer is approaching, which means more electricity to run air conditioners, and more electricity may be consumed. What electric stocks should you plug into? just updated its list of electricity stocks and there are more than 30 with yields above 3%. In addition, these companies can provide relative safety, security, and stability compared to stocks in many other sectors. In the past, utilities have paid favorable dividends for many years with low volatility.

Duke Energy Corporation (DUK) distributes electricity in North Carolina, South Carolina, Ohio, Indiana, and Kentucky. The stock pays a yield of 5.3%, has a trailing price to earnings ratio of 17.8, and a forward PE of 13.4.

Westar Energy, Inc. (WR) also pays a decent yield, with a payout of 4.8%. It has a trailing PE of 15, and forward PE of 13.5. The company serves the state of Kansas.

Integrys Energy Group, Inc. (TEG), based in Chicago, Illinois, trades at 13.8 times earnings, 14.4 times forward earnings, paying 5.2%.

For more top yielding utilities, you can access a free downloadable Excel database of high yield electric utility stocks including one which yields more than 6%, which you can update, change, and sort, at

Disclosure: Author did not not own any of the above at the time the article was written.


No comments: