According to Aubrey McClendon, the CEO of Chesapeake Energy Corp., the United States could have tens of thousands of natural gas filling stations for cars and trucks within a few years. Many investors prefer natural gas over oil, as it is a greener fuel generating a lower carbon footprint. Plus, it also has a long history as a fuel.
The yields on natural gas stocks are fairly decent. Based on the recently updated list at WallStreetNewsNetwork.com, over 20 gas utilities have yields ranging from 2% to over 7%. One example is Energy Transfer Partners L.P. (ETP), which is a publicly traded limited partnership that processes, transports, and sells natural gas. The stock trades at 17.4 times forward earnings and pays a generous yield of 8.2%. The company has been paying quarterly since 1997.
Dallas Texas based Atmos Energy Corp. (ATO) trades at 13.7 times forward earnings and yields 4.1%. 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 13.3 and pays a yield of 3.5%.
For a free list of high yield natural gas utility stocks, which can be downloaded, sorted, and added to, go to WallStreetNewsNetwork.com. The list has over twenty different stocks with yields above 2%.
Disclosure: Author did not own any of the above at the time the article was written.