The utility sectors offers generally high dividend yields with value. The negative point is that the sector is very capital intensive and the growth potential is limited. However, I wanted to know what stocks are the best dividend stock buy picks for the next year. I screened all 123 listed utility stocks by the best ones for next year. My criteria are:
- Forward P/E under 15
- Past 10Y Sales growth over 5 percent
- Positive Earnings per share growth for the next five years
- Operating Margin over 10 percent
Twelve companies fulfilled the above mentioned criteria. Eight of them have a buy or better rating. The mostly represented industry is the eclectic utility industry. I personally don't own any utility stocks because I am a dividend growth investor. I always look for growing companies with strong brands and high abilities to expand aboard. Utilities don't fulfill these criteria. So my main focus will be on the consumer sector.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 15.33 and forward P/E ratio is 12.49. The dividend yield has a value of 3.99 percent. Price to book ratio is 1.45 and price to sales ratio 1.61. The operating margin amounts to 20.66 percent. The average stock has a debt to equity ratio of 0.94.
Related stock ticker symbols:
NGG, FE, EDE, DUK, WR, GXP, CWCO, EOC, ENI, CPK, SBS, ELP