10 Low Risk Companies Offering Great Yields While Remaining Off Investor Radar

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 |  Includes: AEP, DUK, FE, LO, MO, PBCT, PNW, POM, PPL
by: Follow My Alpha

With the current headlines, it’s unlikely that investors will have a smooth ride as things move forward. Still, that doesn’t mean a rough ride can’t remain a profitable one. That’s why in such tumultuous times it makes sense to look for companies that provide a strong dividend and keep a low correlation to the market.

We ran a screen for companies that had a dividend yield of at least 4%. From this pool we then screened for companies that only had market beta risk of .6 or lower. The focus here is to generate a list of companies that had a very low correlation to market movement and provided a steady stream of cash to investors in the form of a dividend to compensate for market risk. We did not screen out any sectors.

The list below is sorted from lowest to highest by the company’s Beta.

1. People's United Financial Inc. (NASDAQ: PBCT)

Sector

Financial

Industry

Savings & Loans

Market Cap

$4.08B

Beta

0.20

Analyst Sentiment

10/14 - List Hold/Neutral (Neutral)

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The firm is a holding company for People’s Bank. It offers a variety of services to both individual and corporate clients. The firm’s dividend yield is 5.34%. In the last month PBCT has lost 14% in value.

Short Interest Note:
The short interest for the firm is 4.00% as of 07/15/2011.

2. Progress Energy (NYSE:PGN)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$ 13.40B

Beta

0.36

Analyst Sentiment

18/18 - List Hold/Neutral (Neutral)

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This is an integrated energy company that covers the Southeast within the US. The firm’s dividend yield is 5.45%. In the last month PGN has lost 6.86% in value.

Short Interest Note:
The short interest for the firm is 1.10% as of 07/15/2011.

3. Duke Energy (NYSE:DUK)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$24.14B

Beta

.4

Analyst Sentiment

18/20 - List Hold/Neutral (Neutral)

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This is an energy company that operates an integrated network of various assets that range from supplying electricity to a portfolio of natural gas and more. The firm’s dividend yield is 5.41%. In the last month DUK has lost 5.06% in value.

Short Interest Note:
The short interest for the firm is 3.20% as of 07/15/2011.

4. Lorillard (NYSE:LO)

Sector

Consumer Goods

Industry

Cigarettes

Market Cap

$14.57B

Beta

0.46

Analyst Sentiment

6/11 - List Buy/Outperform (Bullish)

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The firm makes and sells cigarettes in the US. The firm offers 44 products in total and operates under popular brands as Newport. The firm’s dividend yield is 4.94%. In the last month LO has lost 5.03% in value.

Short Interest Note:
The short interest for the firm is 8.10% as of 07/15/2011.

5. Altria Group (NYSE: MO)

Sector

Consumer Goods

Industry

Cigarettes

Market Cap

$53.62B

Beta

.5

Analyst Sentiment

8/13 List-Hold/Neutral (Neutral)

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The firm is the parent of Philip Morris USA. It owns and operates popular tobacco brands such as Marlboro. The firm’s dividend yield is 5.87%. In the last month MO has lost 4.11% in value.

Short Interest Note:
The short interest for the firm is 1.10% as of 07/15/2011.

6. PP&L Corp (NYSE: PPL)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$15.33B

Beta

0.47

Analyst Sentiment

8/14 - List Buy/Outperform (Bullish)

Click to enlarge

This is a utility and energy company that operates in the US, UK, and Latin America. The firm’s dividend yield is 5.27%. In the last month PPL has lost 5.45% in value.

Short Interest Note:
The short interest for the firm is 2.80% as of 07/15/2011.

7. FirstEnergy Corp (NYSE: FE)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$17.30B

Beta

0.54

Analyst Sentiment

9/17 - List Buy/Outperform (Bullish)

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The firm is a holding company that operates a portfolio of eight electricity utility subsidiaries. The firm’s dividend yield is 5.32%. In the last month FE has lost 7.38% in value.

Short Interest Note:
The short interest for the firm is 0.80% as of 07/15/2011.

8. Pepco Holding (NYSE: POM)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$4.11B

Beta

0.51

Analyst Sentiment

9/10 List-Hold/Neutral (Neutral)

Click to enlarge

A diversified energy company that, through its operating subsidiaries, is engaged primarily in two principal business operations: electricity and natural gas delivery, and competitive energy generation, marketing and supply.

This an energy company that operates in multiple spaces such as natural gas delivery, competitive energy generation, electricity and more. The firm’s dividend yield is 5.95%. In the last month POM has lost 9.34% in value.

Short Interest Note:
The short interest for the firm is 5.10% as of 07/15/2011.

9. American Electric Power (NYSE: AEP)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$ 17.46B

Beta

0.53

Analyst Sentiment

11/22 - List Buy/Outperform (Neutral)

Click to enlarge

A public utility holding company whose public utility subsidiaries have traditionally provided electric service, consisting of generation, transmission and distribution, on an integrated basis to their retail customers.

This is a public utility holding firm that operates smaller public utility subsidiaries across the US. The firm’s dividend yield is 5.08%. In the last month AEP has lost 5.92% in value.

Short Interest Note:
The short interest for the firm is 1.10% as of 07/15/2011.

10. Pinnacle West Capital (NYSE: PNW)

Sector

Utilities

Industry

Electric Utilities

Market Cap

$ 4.37B

Beta

.54

Analyst Sentiment

14/17 - List Hold/Neutral (Neutral)

Click to enlarge

This is a utility company that provides energy-related products and electricity in the Western US. The firm’s dividend yield is 5.08%. In the last month PNW has lost 11% in value.

Short Interest Note:
The short interest for the firm is 1.70% as of 07/15/2011.

We hope this helps investors as they do their own homework and due diligence on companies that are a bit more off the beaten path, offer diversification as well as a sufficient dividend yield to compensate for market risk.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.