The recent 2013 stock market rally and hunt for yield, which forced many bond investors into dividend stocks, has also lifted the boat of Missouri-based integrated utility provider Empire District Electric Company (EDE). This utility company offers above-average dividend yield of 4.5%, offset by relatively weak earnings growth and dividend growth prospects of around 3-4% per year, a high but stabilized debt level and rising CAPEX expenditures.
Compared with an average S&P 500 stock, Empire offers below-average earnings growth at a P/E ratio comparable to the S&P 500 index average. The company's price is inflated by the hunt for yield due to its attractively high current dividend yield. For long-term investors, the company is definitely an attractive income...
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