Saturday, August 04, 2012

High Yields from Natural Gas Stocks

Yes, it is the middle of the ht summer. Time to be thinking about natural gas consumption in the winter and natural gas stocks. According to a recent article in Bloomberg, natural gas has matched coal as the leading power generating fuel for the first time ever since the US Government started tracking this information.

Let's take a closer look at stocks involved in the distribution of natural gas to both homes and businesses. According to, over 15 of them have yields paying more than 3%. As an example, Enterprise Products Partners LP (EPD) is a high yielding gas company, which yields 4.8%. The stock trades at 19.3 times current earnings, and 20.4 times forward earnings.

TransCanada Corp. (TRP), based in Calgery, Alberta, Canada, owns and operates natural gas pipelines and regulated gas storage facilities throughout Northern California. The company, which trades at 23 times earnings, pays a generous yield of 3.9%. You should be aware of the foreign withholding tax which can affect your yield. Speak with your tax preparer before putting this stock in a retirement plan.

Other high yield gas companies include Sempra Energy (SRE) at 3.5%, WGL Holdings Inc (WGL) paying 4.0%, and Northwest Natural Gas (NWN) at a 3.7% yield. You can access a free list of over 25 natural gas companies, along with their price to earnings data, at

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


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