Electric Utilities Stocks: Two (Out of 31) 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. WallStreetNewsNetwork.com 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 Thursday 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 there 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 P/E 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 P/E 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 WallStreetNewsNetwork.com.

Disclosure: Author does not own any of the above.

Comments

[THofler:]

Check out the Brazilian utility CPFL Energia (ADR ticker CPL). It currently has a 7.1% yield (if calculated correctly). I'm not sure what its precise breakdown of energy sources is, but I believe it has a lot of hydropower & some biomass.

Oct 17 12:27 AM

[nmelendez:]

CPFL is not only in Energy but also real estate in Brazil. Long Term trade.


On Oct 17 12:27 AM THofler wrote:

> Check out the Brazilian utility CPFL Energia (ADR ticker CPL). It
> currently has a 7.1% yield (if calculated correctly). I'm not sure
> what its precise breakdown of energy sources is, but I believe it
> has a lot of hydropower & some biomass.

Oct 17 03:58 PM