Low fixed income yields continue to frustrate income investors. For those wanting higher yields and willing to take additional risk, utilities are one sector worth consideration as part of an overall portfolio strategy. Utilities tend to be lower growth, lower volatility stocks compared to other sectors. The simplest option for exposure to utilities is XLU, the Utilities SPDR ETF which currently yields 3.98%.
Using Finviz I screened the utility sector for stocks yielding over 4% with payout ratios below 60%. I previously performed a similar screen last December here which if held until today would have returned 4.74% excluding any dividends versus 2.47% for XLU.
I also listed each stock's beta and the percentage it is above/low its respective 200 day simple moving average. I tend to look for stocks with positive price trend, the 200 day SMA is one simple way to gauge the long term price trend. Beta gauges the volatility of a security in comparison to the market as a whole. A beta of less than 1 indicates a security has been less volatile than the market as a whole. As you can see, each stock has a beta under 1.
EGAS ($69 million) has a relatively small market capitalization, so liquidity should be considered before entering a position.
|Ticker||Company||Trend||P/E||Dividend Yield||Payout Ratio||Beta||200-Day SMA||Price|
|AGL||AGL Resources Inc.||Here||13.03||4.53%||54.98%||0.48||4.95%||38.83|
|AT||Atlantic Power Corporation||Here||5.01||8.18%||18.75%||0.77||9.08%||13.33|
|D||Dominion Resources, Inc.||Here||9.76||4.18%||39.95%||0.56||7.21%||43.82|
|EGAS||Gas Natural Inc.||Here||7.16||4.72%||34.37%||6.80%||11.45|
|HNP||Huaneng Power International Inc.||Here||9.13||5.41%||50.72%||0.7||-1.20%||22.73|
|PEG||Public Service Enterprise Group Inc.||Here||10.66||4.20%||44.01%||0.53||3.18%||32.63|
|UNS||Unisource Energy Corp.||Here||11.9||4.52%||44.25%||0.74||9.44%|
Disclosure: No positions