Saturday, June 04, 2011

Top Yielding Natural Gas Utility Stocks

Natural gas has several benefits over oil, especially in the green area, as natural gas generates a lower carbon footprint. It also has a long history as a fuel; one of the original Dow Jones Industrial Average stocks from the 1800's is a natural gas distributor that is still trading today, Laclede Group Inc. (LG). Laclede trades at 14.5 times forward earnings and sports a yield of 4.4%.

Many other natural gas utility companies pay fairly high yields. As a matter of fact, according to, over 20 gas utilities have yields ranging from 2% to over 7%. For example, Energy Transfer Partners L.P. (ETP) is a publicly traded limited partnership that processes, transports, and sells natural gas. The stock trades at 17.9 times forward earnings and pays a generous yield of 7.6%. The company has been paying quarterly since 1997.

Dallas Texas based Atmos Energy Corp (ATO) trades at 13 times forward earnings and yields 4.2%. The company has been paying dividends since 1989.

Chesapeake Utilities Corporation (CPK) is a provider of natural gas distribution services in Delaware, Maryland, and Florida. The stock has a forward price to earnings ratio of 13 and pays a yield of 3.5%. has just updated its free list of high yield natural gas utility stocks, which can be downloaded, sorted, and added to. The list has over twenty different stocks with yields above 3%.

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

Graph show the price of natural gas.


No comments: