Friday, September 21, 2012

Top High Yield Electric Utilities

If you are looking to invest your money for income, where do you look? T-Bills? No. Savings accounts? No. Certificates of deposit? No. I was recently at my bank and noticed a big sign that said 'Earn 1.5%' in large letters with with small letters underneath that said 'With a 10 year CD." Yes, that's right, you have to tie up your money for ten years.

One alternative is electric utility stocks. Not only are the yields higher, but investors have the potential of increasing dividends. The yields on these utilities range from 3.0% to above 7.0%, according to the latest free list of electric utility stocks at There are over 30 utilities with yields of 3% or more.

One utility with a wide variety of fuel sources used to run its generators is Hawaiian Electric Industries (HE), which is one of the leading utilities involved in the use of renewable energy sources for the generation of electricity. The fuel sources include sugarcane waste, wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and other biofuels. Earnings for the latest quarter ending June 30 were up an amazing 43% on a 7.5% increase in revenues. The stock trades at 15.7 times forward earnings and has a 4.6% yield.

Another high yield electric utility is Ameren Corporation (AEE), which serves customers in Missouri and Illinois. The stock trades at 16.7 times forward earnings and pays a nice yield of 4.9%. This St. Louis based company generates its electricity from coal, nuclear, gas, and hydroelectric sources. Earnings rose by an incredible 52% for the latest quarter, on a 7% drop in revenues.

Consolidated Edison (ED), which serves New York, New Jersey, and Pennsylvania, pays a 4.1% yield and trades at 15.3 times forward earnings. Earnings for the latest quarter were up 29.7%, however revenues were down 7.4%. This Richmond, Virginia based company provides electricity to customers in Virginia and North Carolina.
For a free list of over thirty high yield electric utility stocks, which can be downloaded, sorted, and updated, go to

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


1 comment:

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