Electric Utilities Can Provide High Income and Growth

Do you realize that electric utility stocks were up over 24% for the last year? As a matter of fact, utilities were up 15.6% year-to-date, and have had positive returns for the last month, the last three months, the last three years and the last five years. Not bad for a conservative industry.

So why is this happening?  The primary reason is the extremely low interest rates. Investors want a return greater than 0.88% from a one year certificate of deposit. Utilities can provide a decent income along with growth potential. There are many electric utilities with yields ranging from 3% to 5%, according to the free list of electric utilities at WallStreetNewsNetwork.com.

For example, Avista Corporation (AVA) is a distributor of electricity and natural gas in the state of Washington, Idaho, and Oregon. 45% of the electrical generation comes from hydro power, 16% coal, 13% gas, and 2% comes from wood waste. The stock trades at 17 times trailing earnings, and 16.8 times forward earnings. Latest quarter's earnings were up 14.5% on a 1.7% increase in revenues. The stock sports a yield 3.9%.

Ameren Corporation (AEE) sports a dividend yield of 4.0%. The company serves customers in Missouri and Illinois, with both electricity and natural gas. The stock has a price to earnings ratio of 19, and a forward P/E of 16. Revenues rose 9% for the latest quarter.

Otter Tail Power (OTTR) has had a stagnating price for a few years, then in the middle of 2012, it started to move up.  The stock has a price to earnings ratio of 19, and a forward P/E of 17.  The stock yields 4.1%.

For a free list of electric utility stocks, which has the PE, the forward PE, the PEG, and the yield, go to WallStreetNewsNetwork.com.

Author doesn't own any of the above at the time the article was written.

By Stockerblog.com

Top Electric Utilities: Lower Fuel Prices Higher Stock Prices?

One of the major expenses of electric utility stocks is the cost of fuel to run the generators.  When fuel prices drop, assuming utilities are not lock in to long term agreements, earnings can increase. The price of oil is now at its lowest point since the beginning of December. Natural gas has been in a fairly low range since 2009.

Investors want alternatives to low interest bonds and bank accounts. Electric utility stocks are an alternative which can provide income and price growth potential. 

Buying opportunities abound for income investors for income. There are many of electric utilities to choose from with over over a dozen providing yields of 4% or more, according to WallStreetNewsNetwork.com.

TECO Energy, Inc. (TE) uses oil, natural gas, and coal to run their generators, along with a  a small cogeneration facility. The stock pays a yield of 5.1%. This electric and gas utility holding company provides electricity to West Central Florida. The stock trades at 18 times trailing earnings and 15.5 times forward earnings. The company has raised its dividend every year since 2006.

Black Hills Corporation (BKH) provides electricity to customers in South Dakota, Wyoming, Colorado, and Montana. It trades at 18.7 times earnings with a forward P/E of  20.9. The stock pays a yield of 2.8%.

Integrys Energy Group, Inc. (TEG) serves the Wisconsin, Michigan, and Chicago areas. It has a P/E ratio of 14.8, a forward P/E ratio of 14.7, and offers a very generous yield of 5%.

To see a list of dozens of high yield electric utilities, go to WallStreetNewsNetwork.com.  The list has the PE. the forward PE, the PEG, and the yield for these stocks.

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

By Stockerblog.com

What Utility has Increased its Dividend Every Year Over 25 Years (Actually there are 3)

When a company increases its dividend every year for over a quarter of a century, it says a lot about the company's continued strength of earnings, and it also shows dedication to shareholders. There aren't many companies around that can claim that track record, maybe less than fifty. And of that group, only two and a half are utility stocks (I'll explain the half shortly).

One of these classic stocks is the ever popular Consolidated Edison Inc. (ED), a provider of electric, gas, and steam utility services in New York City and Westchester County. In terms of yield, it shows up about halfway down the list of electric utilties at WallStreetNewsNetwork.com, at 4.8%. The stock has a forward price to earnings ratio of 14.

The second utility to make this exclusive club is Integrys Energy Group, Inc. (TEG), an electric and gas utility that serves Chicago, Wisconsin, Michigan, and Minnesota. The stock has a yield that is a bit higher than Con Ed, paying out 5.1%. The company trades at 16 times forward earnings. Operating income of $1.12 billion provides excellent coverage for dividend payouts of $210 million.

Now to the reason I mentioned two and a half companies. The third company isn't technically a utility; it is considered an oil and gas company. It is the Salt Lake City, Utah based Questar Corporation (STR), a producer and explorer of oil and natural gas. But it also provides retail natural gas distribution services so it could be put in the natural gas utility category. The stock yields 3.3% and trades at 15 times forward earnings. Operating cash flow of $1.15 billion is far more than dividend payouts of $98 billion.

If you want to see a free list of all the top yielding electric and gas utility stocks, go to WallStreetNewsNetwork.com.

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

By Stockerblog.com

Top Yielding Electric Utility Stocks

Last week, I did an article on the Top Yielding Gas Utility Stocks. Now it is time to look at the electric utilities. With the high dividends and relative stability, investors are examining these stocks in more detail. Many utilities are moving more and more towards renewable energy, and with the price of oil and gas down substantially from what it was last year, the costs to run their generators are down. WallStreetNewsNetwork.com recently came up with a list of the highest yielding utilities in the form of an Excel spreadsheet that can be downloaded, sorted, and changed.

Some of the electric utilities on the list include:

UIL Holdings Corporation (UIL) with as yield of 8.4% and a forward PE of 8.7

TECO Energy, Inc. (TE) with as yield of 8.3% 7.4

Pinnacle West Capital Corporation (PNW) with as yield of 8.0% and a forward PE of 8.4

The list at wsnn.com includes three utility stocks with yields above 9%.

Author does not own any of the above.

By Stockerblog.com