Three High 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 P/E 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 P/E of 8.4

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

Disclosure: Author does not own any of the above.

Comments

[skwestorange:]

High yielding does not mean safe dividends. That said, the utilities mentioned may not cut their dividends to zero, but cut would it substantially if their dividends are not covered by their earnings and the credit markets remain stressed past another quarter or two. PNW and TE are more vulnerable since the area of the country they serve has some of the worst residential and commercial real estate issues.

Mar 27 11:13 AM

[donzelion:]

I'd generally ask for the payout ratio before looking any further into the dividends. Google's screener (a rough'n'ready freebie) offers 284 companies paying over 8% right now (at least half of which are erroneous). I greatly prefer WSJ's dividend tool -

online.wsj.com/mdc/pub...

Haven't tried but like the look and ideology of dividendinvestor.com (don't believe in paying for online services for my own use - if a client won't pay for it, then I don't need it).

Mar 30 07:35 AM