4 Cheapest Utilities Paying The Best Dividends

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Includes: AEE, HNP, TEG, UTL
by: Dividend Screen

The basis for a future return is that you must know when stocks are cheap and when they are expensive in order to find the optimal exit. Let’s scout for some bargains within the utility sector. Stocks from the sector have a total market capitalization of $17.4 trillion. The average P/E ratio is 15.6 and the dividend yield amounts to 4.1 percent.

I screened the whole sector by utilities with cheapest price ratios. As criteria, I selected a low forward price-to-earnings ratio with a value of less than 15, a price to book ratio of less than 2 as well as a price to sales ratio of less than 1. Finally, the dividend yield must be above 5 percent. Roughly 16 percent of the stocks from the sector are high-yields, and 4 of them are really cheap in relation to the mentioned criteria. Here are the cheapest utility stocks sorted by divided yield:

1. Huaneng Power International (NYSE:HNP) has a market capitalization of $6.3 billion, generates revenues in an amount of $18.8 billion and a net income of $400.6 million. Its following P/E ratio is 14.4 and forward price to earnings ratio 8.9, Price/Sales 0.3 and Price/Book ratio 0.8. Dividend Yield: 6.9 percent.

2. Unitil (NYSE:UTL) has a market capitalization of $287.1 million, generates revenues in an amount of $356.0 million and a net income of $11.5 million. Its following P/E ratio is 24.7 and forward price to earnings ratio 14.2, Price/Sales 0.8 and Price/Book ratio 1.6. Dividend Yield: 5.3 percent.

3. Integrys Energy Group (NYSE:TEG) has a market capitalization of $4.1 billion, generates revenues in an amount of $4.9 billion and a net income of $244.6 million. Its following P/E ratio is 16.9 and forward price to earnings ratio 14.7, Price/Sales 0.8 and Price/Book ratio 1.4. Dividend Yield: 5.2 percent.

4. Ameren Corporation (NYSE:AEE) has a market capitalization of $7.77 billion, generates revenues in an amount of $7.7 billion and a net income of $94.0 million. Its following P/E ratio is 83.4 and forward price to earnings ratio 13.8, Price/Sales 1.0 and Price/Book ratio 1.0. Dividend Yield: 5.1 percent.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.