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If you're looking for a stable company with steady revenues and a solid dividend, you couldn't do much better than Energy East Corp. (NYSE: EAS), a power company based in New York and New England.

The company is well-positioned: With 98% of its business regulated, it has shifted to more reliable delivery services rather than risky generation. EAS is able to pass through commodity prices to customers. As such, EAS can be counted on to deliver steady revenues for the foreseeable future.

One thing this is not: A growth stock. Based in a region with moderate population growth, EAS's slow but steady growth has come mostly through acquisitions and rate hikes. There aren't many options left for the former approach, and the utilities are limited in terms of the latter by regulation. (And sometimes regulators will actually force utilities to cut their prices and even return money to customers, which is never good for the bottom line.)

So I don't think you should be looking to EAS if you want a stock that's going to grow by leaps and bounds. But with its nice dividend of $1.20 per year (a yield of almost 5%), and a likely stock growth of 3% - 4% over the next twelve months, you're looking at a nice return of 8% or higher. This rock-ribbed Northeastern utility could be a nice part of your portfolio if you're looking for that kind of reliable return.

Type of stock:
A slow-growing but steady power company based in the Northeast.

Price target:
I think you could buy this at its current price just below $25 and wait for growth to $27 or higher over the next twelve months (and the corresponding dividend payment).

EAS 1-yr chart:

EAS chart

Source: Energy East Corp.: Yankee Reliability