When the stock market is volatile and in recessionary times, investors often turn to electric utilities as investments. The advantages they have over other stocks is that they are high income, and less volatile. They are also monopolies, provide a product that everyone requires, and during a recession when people are cutting back, one of the last things they cut back on are their electric bills.
The following electric utility stocks all have yields over 6%, P/E ratios below 18, and PEG ratios below three:
- Great Plains Energy Incorporated (GXP) is a Kansas City based generator of electricity from coal, nuclear, natural gas, oil, and wind. It pays a yield of 8.70%, has a P/E of 10 and a PEG of 1.42.
- Ameren Corporation (AEE) is a utility that serves Missouri and Illinois. It pays a yield of 8.10%, has a P/E of 9 and a PEG of 2.54.
- Constellation Energy Group, Inc. (CEG) is a Baltimore based utility which operates fossil fuel, nuclear, and renewable energy generating facilities. It pays a yield of 7.70%, has a P/E of 5 and a PEG of 0.26.
- The Empire District Electric Company (EDE) provides electricity to Missouri, Kansas, Oklahoma, and Arkansas. It pays a yield of 6.80%, has a P/E of 17 and a PEG of 2.18.
- Pinnacle West Capital Corporation (PNW) is a Phoenix, Arizona based utility. It pays a yield of 6.60%, has a P/E of 9 and a PEG of 2.84.
- CenterPoint Energy, Inc. (CNP) is a Houston, Texas based utility. It pays a yield of 6.60%, has a P/E of 9 and a PEG of 0.51.
- Progress Energy, Inc. (PGN) provides electricity in North Carolina, South Carolina, and west central Florida. It pays a yield of 6.50%, has a P/E of 11 and a PEG of 2.01.
- Westar Energy, Inc. (WR) is a Topeka, Kansas based utility. It pays a yield of 6.30%, has a P/E of 10 and a PEG of 2.97.
- DTE Energy Company (DTE) is a Detroit, Michigan based utility. It pays a yield of 6.10%, has a P/E of 8 and a PEG of 1.89.
- Integrys Energy Group, Inc. (TEG) is a Chicago, Illinois based utility which uses coal, natural gas, fuel oil, hydroelectric, nuclear, and wind sources to generate electricity. It pays a yield of 6.00%, has a P/E of 12 and a PEG of 1.36.
Disclosure: Author owns PGN.