Seeking Alpha
Profile| Send Message| ()  

In light of low bond yields and the threat of interest rate risk, investing in dividends companies is attractive because of higher present yields and the opportunity for dividend growth. Income investors searching for growing dividends could benefit by adding utility companies to their portfolios.

The following dividend paying stocks were screened for their long term performance. Each of the following utility stocks pays a dividend in excess of the 10-year Treasury yield and had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than Treasuries and has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate treasuries. Price multiples, dividend histories, and return of equity histories are provided below:

Avista Corp. (AVA) recently traded at $25.10 per share. At this price level, the stock has a 4.4% dividend yield. For 10 out of the past 10 fiscal years, a share of AVA paid a total of $6.19 in dividends. Of these dividend payments, a total of $3.67 were paid in the last five years.

AVA shareholders have sustained a -2.2% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 1.3, a price-to-earnings multiple of 14.4, and a price-to-sales multiple of 0.9 (trailing twelve months). Over the past decade shareholders enjoyed a 5.9% average annual return on equity.

Constellation Energy Group, Inc. (CEG) recently traded at $36.23 per share. At this price level, the stock has a 2.6% dividend yield. For 10 out of the past 10 fiscal years, a share of CEG paid a total of $12.04 in dividends.

CEG shareholders have endured a -7.4% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 0.9, a price-to-earnings multiple of 18.4, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders enjoyed a 8.8% average annual return on equity.

Exelon Corporation (EXC) recently traded at $39.74 per share. At this price level, the stock has a 5.2% 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 endured a -7.4% change in share price over the past year. At present, shares of this large cap stock trade at a price-to-book ratio of 1.9, a price-to-earnings multiple of 11.1, and a price-to-sales multiple of 1.4 (trailing twelve months). Over the past decade shareholders savored a 18.9% average annual return on equity.

UGI Corp. (UGI) recently traded at $27.87 per share. At this price level, the stock has a 3.7% dividend yield. For 10 out of the past 10 fiscal years, a share of UGI paid a total of $7.24 in dividends. Of these dividend payments, a total of $4.19 were paid in the last five years.

UGI shareholders have endured a -4.4% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 1.6, a price-to-earnings multiple of 13.7, and a price-to-sales multiple of 0.5 (trailing twelve months). Over the past decade shareholders savored a 17.9% average annual return on equity.

UniSource Energy Corporation (UNS) recently traded at $36.8 per share. At this price level, the stock has a 4.6% dividend yield. For 10 out of the past 10 fiscal years, a share of UNS paid a total of $8.32 in dividends. Of these dividend payments, a total of $5.42 were paid in the last five years.

UNS shareholders have sustained a -1.3% change in share price over the past year. At present, shares of this small cap stock trade at a price-to-book ratio of 1.5, a price-to-earnings multiple of 12.9, and a price-to-sales multiple of 0.9 (trailing twelve months). Over the past decade shareholders savored a 11.1% average annual return on equity.

Wisconsin Energy Corp. (WEC) recently traded at $34.21 per share. At this price level, the stock has a 3.5% dividend yield. For 10 out of the past 10 fiscal years, a share of WEC paid a total of $5.04 in dividends. Of these dividend payments, a total of $2.98 were paid in the last five years.

WEC shareholders have sustained a -1.8% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.0, a price-to-earnings multiple of 15.5, and a price-to-sales multiple of 1.8 (trailing twelve months). Over the past decade shareholders savored a 11.1% average annual return on equity.

Aqua America Inc. (WTR) recently traded at $21.26 per share. At this price level, the stock has a 3.1% dividend yield. For 10 out of the past 10 fiscal years, a share of WTR paid a total of $4.30 in dividends. Of these dividend payments, a total of $2.57 were paid in the last five years.

WTR shareholders have endured a -3.1% change in share price over the past year. At present, shares of this mid cap stock trade at a price-to-book ratio of 2.4, a price-to-earnings multiple of 20.9, and a price-to-sales multiple of 4.1 (trailing twelve months). Over the past decade shareholders savored a 11.3% average annual return on equity.

Clearly there are some attractive dividend yields and dividend histories in this list of utility stocks. Based on attractive valuations, investors should be motivated to research UNS and EXC for consideration as additions to an income portfolio.

Source: Plug Into Dividends From These 7 Growing Utilities