Seeking Alpha
Profile| Send Message|
( followers)  

Chasing yield can be very dangerous: dividend yield is high for many stocks that investors have dumped. Some of these out-of-favor stocks face financial challenges and will not be able to maintain their dividend payments. To protect your portfolio from faltering firms that belong in the garbage, the following screen was conducted to uncover utility stocks with electrifying dividend yields and long-term histories of generating shareholder income and wealth:

Dividend yield is greater than 3%

Annual dividend growth was higher than 2% over past 10 fiscal years. (Geometric average)

Dividends were paid in all 10 of the last 10 fiscal years.

Annual return on equity was higher than 5% over past 10 fiscal years. (geometric average)

Twenty-four firms met these criteria:

10-Year Average

Ticker

Company

Div Yield

Div Growth

ROE

TEG

Integrys Energy Group, Inc.

5.3%

2.7%

9.4%

FE

FirstEnergy Corp.

4.9%

3.9%

11.0%

VVC

Vectren Corporation

4.9%

3.4%

10.3%

EXC

Exelon Corporation

4.8%

8.7%

18.9%

PPL

PPL Corporation

4.7%

10.2%

16.0%

ETR

Entergy Corporation

4.6%

9.7%

12.3%

UNS

UniSource Energy Corporation

4.6%

14.6%

11.1%

PNW

Pinnacle West Capital

4.5%

3.2%

7.8%

SCG

SCANA Corp.

4.5%

4.7%

10.7%

BKH

Black Hills Corporation

4.4%

2.5%

10.2%

AGL

AGL Resources Inc.

4.4%

5.0%

13.6%

AVA

Avista Corp.

4.3%

7.6%

5.9%

PEG

Public Service Enterprise Group

4.2%

2.4%

15.5%

ARTNA

Artesian Resources

4.2%

4.3%

8.6%

D

Dominion Resources, Inc.

3.9%

3.6%

13.4%

NEE

NextEra Energy, Inc.

3.9%

6.0%

12.6%

NST

NSTAR

3.8%

4.7%

12.4%

NWN

Northwest Natural Gas

3.8%

3.0%

9.8%

UGI

UGI Corp.

3.6%

5.4%

18.9%

WEC

Wisconsin Energy Corp.

3.6%

7.2%

11.1%

SRE

Sempra Energy

3.6%

4.5%

16.7%

PNY

Piedmont Natural Gas

3.5%

3.9%

12.3%

NJR

New Jersey Resources Corp.

3.2%

5.7%

14.3%

NU

Northeast Utilities

3.2%

8.6%

7.1%

Summaries for the Five Top Dividend Stocks

Exelon Corporation (NYSE:EXC) recently traded at $43.4799 per share. At this price level, the stock has a 4.8% dividend yield. For 10 out of the past 10 fiscal years, a share of EXC paid a total of $15.20 in dividends.

EXC shareholders have enjoyed a 10.4% increase in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 2.0, a price-to-earnings multiple of 12.0, and a price-to-sales multiple of 1.5 (trailing twelve months). Over the past decade shareholders savored a 18.9% average annual return on equity.

FirstEnergy Corp. (NYSE:FE) recently traded at $44.93 per share. At this price level, the stock has a 4.9% dividend yield. For 10 out of the past 10 fiscal years, a share of FE paid a total of $18.07 in dividends. Of these dividend payments, a total of $10.40 were paid in the last five years.

FE shareholders have savored a 28.1% rise in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 1.4, a price-to-earnings multiple of 18.8, and a price-to-sales multiple of 1.2 (trailing twelve months). Over the past decade shareholders savored a 11.0% average annual return on equity.

PPL Corporation (NYSE:PPL) recently traded at $29.2 per share. At this price level, the stock has a 4.7% dividend yield. For 10 out of the past 10 fiscal years, a share of PPL paid a total of $10.24 in dividends.

PPL shareholders have savored a 17.6% increase in share price over the past year. At present, shares of this largecap stock trade at a price-to-book ratio of 1.6, a price-to-earnings multiple of 11.3, and a price-to-sales multiple of 1.7 (trailing twelve months). Over the past decade shareholders savored a 16.0% average annual return on equity.

Integrys Energy Group, Inc. (NYSE:TEG) recently traded at $50.9 per share. At this price level, the stock has a 5.3% dividend yield. For 10 out of the past 10 fiscal years, a share of TEG paid a total of $23.70 in dividends. Of these dividend payments, a total of $12.90 were paid in the last five years.

TEG shareholders have enjoyed a 11.5% rise in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 1.3, a price-to-earnings multiple of 15.4, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders enjoyed a 9.4% average annual return on equity.

Vectren Corporation (NYSE:VVC) recently traded at $28.58 per share. At this price level, the stock has a 4.9% dividend yield. For 10 out of the past 10 fiscal years, a share of VVC paid a total of $11.95 in dividends.

VVC shareholders have savored a 19.4% increase in share price over the past year. At present, shares of this midcap stock trade at a price-to-book ratio of 1.6, a price-to-earnings multiple of 16.7, and a price-to-sales multiple of 1.0 (trailing twelve months). Over the past decade shareholders savored a 10.3% average annual return on equity.

These summaries are a great jumping-off point for further research, and other stocks on the list are also worth looking into.

Source: Powerful Utility Dividends