Ten Highest Yielding Electric Utility Stocks

If you are looking for income stocks, electric utilities can provide a relatively high yield, relative stability, and growth potential. With the price of oil down more than $20 per barrel below its high last year and coal selling near its three year low, the cost of electrical generation has been reduced for many of these utilities.

The following list shows the top ten utilities in terms of yield, along with the area they serve and the fuels which produce much of their electrical generation. Yield is calculated based on the annual dividend payment, divided by the closing price per share on March 21:

Great Plains Energy Inc. (GXP) Yield: 5.155%. Serves western Missouri and eastern Kansas. 73% coal.

Empire District Electric Co.(EDE) 5.151%. Missouri, Kansas, Oklahoma, and Arkansas. 43% coal, 26% oil.

Duquesne Light Holdings Inc. (DQE) 5.0%, southwestern Pennsylvania.

Progress Energy Inc. (PGN) 4.78%, North Carolina, South Carolina, and Florida. 30% coal, 35% oil.

UIL Holdings Corp. (UIL) 4.77%, southwestern part of the State of Connecticut.

Hawaiian Electric Industries Inc. (HE) 4.75%, Oahu, Hawaii, Maui, Lanai, and Molokai. 61% oil.

DTE Energy Co. (DTE) 4.5%, southeastern Michigan. 72% coal.

TECO Energy Inc. (TE) 4.5%, West Central Florida and Guatemala. 49% coal.

Pinnacle West Capital Corp. (PNW) 4.4%, Arizona.

Southern Co. (SO) 4.3%, Alabama, Florida, Georgia, and Mississippi. 67% oil, 11% oil.

Disclosure: Author owns PGN.

Comments

[StigmaII:]

Since this was published 15 months ago, the price of coal has gone up. How much has that affected the list yields? Do these still range as the highest? If not, could you publish a revised list? Would be great for the current market.

Thanks

2008 Jul 12 06:39 PM