Thursday, October 15, 2009

31 Electric Utilities Yielding Over 4%

Since the Dow broke 10,000, maybe you've decided to take some profits, and want to move your funds into something that pays a fairly decent yield. Electric utility stocks may be what you are looking for. has come up with a list of 31 electric utility stocks that pay a dividend over 4%.

Utilities have always been known as 'widows and orphans' stocks throughout history, meaning that they have been considered very conservative investments. Recently, that has shown to be not so true in recent history with respect to certain companies, although overall, during long periods of time, utilities have paid favorable dividends with low volatility.

However, the the rise in oil prices, and oil hitting its highest level today for the year, it may be wise at this time to avoid the companies with the highest oil exposure. Instead of utilities that generate most of their electricity from using oil in their generators, investors should look for the companies that use other sources of fuel, especially natural gas, because there is such a glut right now.

As an example, Westar Energy Inc. (WR) generates about 34% of its energy from natural gas, with 56% from coal and 9% from nuclear. This utility which serves Kansas has a forward PE of 12, and a yield of 6.1%.

OGE Energy Corp. (OGE) has 29% of its energy coming from natural gas, with 51% from coal. They serve the south central United States. The stock has a forward PE of 11.9, and a yield of 4.3%.

You can access a free downloadable Excel database of utility stocks, which you can add to, change, and sort, at

Author does not own any of the above.


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