Most sold short utility dividend stocks originally published at "long-term-investments.blogspot.com". Today I like to look at the most shorted dividend stocks from the utility sector. I observed only stocks with a market capitalization over USD 300 million and a float short ratio over 5 percent.
Only eight companies have a capital stake with more than 5 percent of short sellers. Utilities are very unpopular in terms of borrowing shares and selling them with hope to cause a stock crash.
I often told that one of the characteristics of a utility stock is the stability. But the price you pay is the low growth and high debt. The capital intensive business model doesn't allow it to expand the balance sheet without capital increases.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 20.07 and forward P/E ratio is 17.47. The dividend yield has a value of 3.45 percent. Price to book ratio is 1.87 and price to sales ratio 1.92. The operating margin amounts to 10.49 percent and the beta ratio is 0.42. Stocks from the list have an average debt to equity ratio of 1.30.
Related stock ticker symbols:
ORA, HE, LG, POM, NWN, NJR, ITC, PNY