Utilities with best dividend yields and high earnings per share growth forecasts originally published at "long-term-investments.blogspot.com". Utilities are well-known for its stability and high dividend payments but they offer also high debt and low growth rates. Sure, utilities can give you some kind of safeness but the only thing that let's your wealth grow is growth.
Growth is very expensive within the utility sector and I am not sure how it works in the United States but in many countries on the world, utilities are regulated by the government, so they cannot increase prices how they like.
Utilities are essential supplier for basic consumptions products like electricity, water, garbage and so on. Prices should be low in order to realize an optimized prosperity of the nation. If prices are too high, the government will be changed at the next election.
For investors is this fact a very hard environment to make money. You can do it but it is much easier in other sectors. If you invest money in foreign utilities, you bet mainly on an inflation growth and a currency gain.
However, a high dividend is not the only solution of wealth. Growth is more important. I prefer low yielding stocks with no legislative rules and high growth. This will help me to grow faster than the inflation.
Today, I like to show you some of the best yielding utilities with the highest expected earnings per share growth for the next half-decade. From 123 listed utilities pay 107 a dividend but only for 12 companies, earnings per share is expected to grow yearly by more than 10 percent.
Gas utilities are the dominant players on my screening result - There are five stocks from the industry. It could be possible that analysts expecting lower gas prices for the mid-term due to the shale gas boom.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 38.87 and forward P/E ratio is 22.87. The dividend yield has a value of 2.99 percent. Price to book ratio is 3.75 and price to sales ratio 1.92. The operating margin amounts to 13.89 percent and the beta ratio is 0.91. Stocks from the list have an average debt to equity ratio of 2.95.
Related stock ticker symbols:
APU, TAC, EDE, ATLS, OKE, TRGP, SJW, ITC, NRG, ORA, HNP, EQT