Utility stocks that pay dividends have been hit hard recently as investors move away from safe stocks and into riskier equities that may provide more growth. Many of these stocks may be approaching great values. There are three utility dividend stocks that yield over 3% that have had insider buying this year. Coincidentally each of these stocks has consistently raised its dividend for many years.
High level at employees at each of these companies have invested their own money because they believe these stocks are set to move higher. Insider buying can be an indicator of future growth but it should never be the sole reason to invest. Make sure to research the fundamentals of any company before you put your money to work.
Black Hills Corp (BKH)
Michael Vekich (Director) purchased 2000 shares of BKH on 2/7/12. BKH has a dividend yield of 4.1% and a 5-year dividend growth rate of 2%. It has raised the dividend for 40 consecutive years.
Black Hills is a utility and non-regulated energy company that mostly operates in the U.S. The utilities business includes electric and natural gas operations. The energy business consists of oil, gas, power generation and coal mining. It serves close to 1 million customers throughout Montana, Colorado, Wyoming, South Dakota, and the Mid-West.
Xcel Energy Inc (XEL)
James Sheppard purchased 1000 shares of XEL on 2/6/12. XEL has a dividend yield of 3.9% and has a 5-year dividend growth rate of 3.1%. It has raised the dividend for eight consecutive years and has a low payout ratio of 60%.
Xcel Energy operates through its four subsidiaries that provide electricity and natural gas to customers in eight U.S. states. The WestGas subsidiary is a small interstate natural gas pipeline. It also has a non-regulated subsidiary, Elogne, which invests in rental house projects in low income areas.
Dominion Resources Inc (D)
Dominion Resources has had a lot of insider buying lately. Mark Kington (Director) purchased 5000 shares on 2/6/12, and 2800 shares on 1/31. Also on 1/31 Peter Brown (Director) and Mark McGettrick (EVP and CFO) each purchased 5000 shares. Dominion has a dividend yield of 4% and a 5-year dividend growth rate of 7.4%. It has raised the dividend for eight consecutive years and has a payout ratio of 75%.
Dominion Resources produces and transports energy. It operates a natural gas storage system, transportation systems and electric transmission lines. It is my personal power company located here in Virginia.
Disclosure: I am long D.
