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Defensive investors like high-dividend-yielding stocks and consider them as viable options, especially in inflationary environments. Additionally, they also select companies with consistent growth in order to achieve sustainable profits. We are concerned about the Fed’s inflationary monetary policy, and therefore we recommend investors play defensively by purchasing dividend stocks with consistent growth rates.

Some sectors, like the utilities sector, contain many high-yielding stocks that have achieved consistency in earnings growth. Below we compiled a list of high-dividend utilities stocks with consistent growth. All companies have at least $2 billion market cap, dividend yields higher than 3% and EPS growth rate above 10% per year over the past five years.

Market data sourced from Finviz.

Ticker

Company

Dividend Yield

YTD Return

EPS growth

D

Dominion Resources, Inc.

3.95%

20.39%

27.34%

EXC

Exelon Corp.

5.10%

2.77%

22.41%

NEE

NextEra Energy, Inc.

4.16%

4.78%

15.19%

PEG

Public Service Enterprise Group

4.24%

4.93%

12.39%

DTE

DTE Energy Co.

4.89%

9.90%

19.26%

NU

Northeast Utilities

3.43%

3.02%

15.07%

AWK

American Water Works Company

3.14%

17.64%

31.83%

OGE

OGE Energy Corp.

3.18%

6.11%

15.29%

LNT

Alliant Energy Corporation

4.48%

6.72%

40.22%

NFG

National Fuel Gas Co.

3.07%

-28.45%

10.24%

DPL

DPL Inc.

4.42%

21.14%

20.95%

NVE

NV Energy, Inc.

3.41%

2.63%

16.78%

APU

AmeriGas Partners LP

6.82%

-6.71%

20.59%

Here are the 10 high-yield utilities stocks with consistent growth that have the largest market capitalization.

Dominion Resources, Inc. is a producer and transporter of energy. D has a dividend yield of 3.95%, and its EPS grew 27.34% per year over the past five years. It has a market cap of $28.7B, a P/E ratio of 17.07, and returned 20.39% since the beginning of this year. Charles Clough had $14 million of D shares.

Exelon Corp. is a utility services holding company. EXC has a dividend yield of 5.10%, and its EPS grew 22.41% per year over the past five years. It has a market cap of $27.3B, a P/E ratio of 10.3, and returned 2.77% since the beginning of this year. Steven Cohen had $60 million invested in EXC (see Cohen’s top stock picks).

NextEra Energy, Inc. is an electric power company in North America and the United States. NEE has a dividend yield of 4.16%, and its EPS grew 15.19% per year over the past five years. It has a market cap of $22.3B, a P/E ratio of 12.04, and returned 4.78% since the beginning of this year. Phill Gross and Robert Atchinson invested $67 million in NEE stock.

Public Service Enterprise Group Inc. is an integrated generation and energy services company. PEG has a dividend yield of 4.24%, and its EPS grew 12.39% per year over the past five years. It has a market cap of $16.4B, a P/E ratio of 10.13, and returned 4.93% since the beginning of this year. Jim Simons had $27 million invested in PEG stock.

DTE Energy Co. is a diversified energy company. DTE has a dividend yield of 4.89%, and its EPS grew 19.26% per year over the past five years. It has a market cap of $8.1B, a P/E ratio of 11.78, and returned 9.90% since the beginning of this year. Cliff Asness invested more than $31 million in DTE.

Northeast Utilities is engaged in the energy delivery business. NU has a dividend yield of 3.43%, and its EPS grew 15.07% per year over the past five years. It has a market cap of $5.7B, a P/E ratio of 13.47, and returned 3.02% since the beginning of this year. Robert Millard and Jim Simons both invested about $20 million in NU stock.

American Water Works Company, Inc. is a water and wastewater utility company. AWK has a dividend yield of 3.14%, and its EPS grew 31.83% per year over the past five years. It has a market cap of $5.1B, a P/E ratio of 18.41, and returned 17.64% since the beginning of this year. John Osterweis had nearly $100 million invested in AWK.

OGE Energy Corp. is an energy and energy services provider offering physical delivery and related services for both electricity and natural gas in the south central United States. OGE has a dividend yield of 3.18%, and its EPS grew 15.29% per year over the past five years. It has a market cap of $4.3B, a P/E ratio of 19.84, and returned 6.11% since the beginning of this year. Phill Gross and Robert Atchinson had over $40 million invested in OGE stock.

Alliant Energy Corporation operates as a regulated investor-owned public utility holding company. LNT has a dividend yield of 4.48%, and its EPS grew 40.22% per year over the past five years. It has a market cap of $4.2B, a P/E ratio of 13.09, and returned 6.72% since the beginning of this year. Jim Simons invested $8.2 million in LNT stock.

National Fuel Gas Co. is a diversified energy company consisting of four business segments: Utility, Pipeline and Storage, Exploration and Production, and Energy Marketing. NFG has a dividend yield of 3.07%, and its EPS grew 10.24% per year over the past five years. It has a market cap of $3.8B, a P/E ratio of 15.24, and lost 28.45% since the beginning of this year. Jim Simons and Israel Englander both had around $30 million invested in NFG (see Englander’s top stock picks).

Disclosure: I am long PEG.

Source: 13 High-Yield, Steadily Growing Utilities Stocks