Wednesday, February 20, 2013

Utility Stocks are On the Move

Did you know that utility stocks are up 7.7% for the last three months, based on the Dow Jones Utility Average? Not bad for income producing investments. Electric utilities are often considered a conservative play on the recession recovery. Businesses expand, use more electricity. New housing developments create new power customers.

And of course the best feature for income investors, is of course the income. There are over 20 high yield electric utilities with dividend payout rates of 4% or more, according to As an example, Integrys Energy Group (TEG) an energy holding company, markets natural gas and electricity to customers in Chicago, Wisconsin, Minnesota, and Michigan. The company posted a 78% increase in quarterly earnings on flat revenues. The stock has a forward price to earnings ratio of 16 and a yield of 4.8%. The company reports earnings on February 28.

Southern Company (SO) is another high yielder based in Atlanta, Georgia. Earnings were up 46.7% for the latest quarter, on a 0.2% rise in revenues. The stock trades at 15 times forward earnings, and pay a generous yield of 4.4%.

TECO Energy (TE) provides electric energy to the growing economy of Florida. The stock pays a generous yield of 5.2%, with payments made quarterly. Unfortunately, earnings for the latest quarter were down 15% on an 8% drop in revenues.

For a free list of high yield electric utilities, that hows stock ticker symbols, price to earnings ratios, and yields, go to

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


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