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A 4.1% dividend rate on a regulated utility selling at a 15 PE may look attractive, writes...

A 4.1% dividend rate on a regulated utility selling at a 15 PE may look attractive, writes Martin Sosnoff, but payout ratios are nearly 70% of slow-growing earnings. Instead take a look at healthcare, yielding a similar amount but with lower payout ratios. His favorites are BMY, MRK, PFE, and UNH. Of note, the XLV hit an all-time high today.
Comments (2)
  • montanamark
    , contributor
    Comments (1434) | Send Message
     
    UNH only pays 1.5 and has been weak in context of obamacare ruling; funds are chasing PFE like a tech stock and the PE is increasing and yield dropping
    alot of yield chasing today
    17 Jul 2012, 03:41 PM Reply Like
  • wiesemc
    , contributor
    Comments (565) | Send Message
     
    UNH has been raising their dividend for a few years now. Buy on the dips and you'll be rewarded long-term.
    17 Jul 2012, 09:21 PM Reply Like
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