Your Utilities Top Yield Stocks Per April Stats

Summary

• PEGI, TERP, & AY led the top-ten Utilities pack per analyst-targeted price gains with combined 25.5% average net-gains, while 7 trailing combined for 14.8% average gains estimated 4/9/18.
• All ten top net gains averaged 18%.
• 50 Top Utilities stocks ranged in estimated annual yield from 4.55% to CTPZY's 13.63%. Top ten, NYLD, TERP, NYLD.A, ELEZY, EBR.B, CAFD, APU, PEGI, HGKGY & CTPZY averaged 16.04% yield.
• Utilities top ten firms by broker target price upsides, SO, CAFD, NYLD.A, NYLD, APU, BEP, PPL, TERP, AY & leader PEGI averaged 12.25% upsides.
• $5k invested in the lowest-priced five top-yield Utilities showed 19.86% LESS net gain than from $5k invested in all ten. High priced big dogs bossed April's Utilities.

Actionable Conclusions (1-10): Brokers Targeted 11% To 31.6% Net Gains For Top Ten Utilities To April 2019

Seven of ten top dividend-yielding Utilities were verified as being among the top ten gainers for the coming year based on analyst 1-year target prices. (They're tinted gray in the chart above). Thus, the yield-based forecast for Utilities as graded by Wall St. wizards was 70% accurate.

Projections based on estimated dividend returns from $1000 invested in the thirty highest yielding stocks and aggregate one year analyst mean target prices as reported by YCharts produced the 2019 data as surveyed. Note: one year target prices from one analyst were not applied (n/a). Ten probable profit-generating trades to April, 2019 were:

Pattern Energy Group (PEGI) was projected to net $316.43, based on dividends, plus median target price estimates from fifteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 3% under the market as a whole.

TerraForm Power (TERP) was projected to net $228.65, based on a median target price estimate from seven analysts, plus the estimated annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 3% less than the market as a whole.

Atlantica Yield (AY) was projected to net $220.44 based on dividends, plus a median target price estimate from six analysts, less broker fees. The Beta number showed this estimate subject to volatility 1% above the market as a whole.

AmeriGas Partners (APU) was projected to net $203.98, based on dividends, plus a median target price estimate from nine analysts, less broker fees. The Beta number showed this estimate subject to volatility 68% less than the market as a whole.

PPL Corporation (PPL) was projected to net $192.79, based on dividends, plus upside estimates from eighteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 48% less than the market as a whole.

Brookfield Renewable (BEP) netted $183.03 based on dividends, plus a median target price estimate from fifteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 80% less than the market as a whole.

NRG Yield (NYLD) netted $122.40 based on dividends, plus a median target price estimate from six analysts, less broker fees. The Beta number showed this estimate subject to volatility 72% over the market as a whole.

Cia de Transmissao de Eletrica (OTCPK:CTPZY) was projected to net $116.34, based on target price estimates from three analysts, plus annual dividend, less broker fees. The Beta number showed this estimate subject to volatility 51% less than the market as a whole.

Power Assets Holdings (OTCPK:HGKGY) was projected to net $112.84, based on no target price estimates, just dividends, less broker fees. The Beta number showed this estimate subject to volatility 50% under the market as a whole.

8point3 Energy Partners (CAFD) was projected to net $110.36, based on upside estimates from seven analysts, plus dividends, less broker fees. No Beta number was available for CAFD.

The average net gain (dividend and price less broker fees) was estimated at 18.7% on $10k invested as $1k in each of these ten dogs. This gain estimate was subject to average volatility 32% less than the market as a whole.

The Dividend Dogs Rule

Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More precisely, these are, in fact, best called, "underdogs".

Top 50 April Utilities Sector Stocks By Yield

Actionable Conclusions (11-20) Ten Top Dividend Utilities Stocks Ranked By Yield

Top ten Utilities Sector dogs selected 4/9/18 by yield represented three of five constituent industries. Top yielding stock, was Cia de Transmissao de Elétrica (OTCPK:CTPZY), the tops of five regulated electric utility industry firms in the top ten. The other four electric utilities placed sixth, to eighth, and tenth: Centrais Eletricas (EBR.B) [6]; Endesa SA (OTCPK:ELEZY) [7]; NRG Yield (NYLD.A) [8]; NRG Yield (NYLD) [10].

Four independent power producer representatives placed second, third, fifth, and ninth in the top ten: Power Assets Holdings (OTCPK:HGKGY) [2], Pattern Energy Group (PEGI) [3], 8point3 Energy Partners (CAFD) [5], and TerraForm Power (TERP) [9].

One regulated gas company placed fourth, AmeriGas Partners (NYSE:APU) [4], and completed the top April Utilities by yield.

Actionable Conclusions: (21) Ten Top Utilities Showed 3.6% To 24% Price Upsides To April, 2019; (22) None Showed Downside.

To quantify top stock rankings, analyst mean price target estimates provided a "market sentiment" gauge of upside potential. Added to the simple high-yield metrics, analyst mean price target estimates became another tool to dig out bargains.

Analysts Calculated A 19.86% Disadvantage For 5 Highest Yield, Lowest Priced Utilities Sector Stocks To April 2019

Ten top Utilities were culled by yield for their monthly update. Yield (dividend / price) results verified by YCharts did the ranking.

As noted above, top ten Utilities dogs selected 4/9/18 showing the highest dividend yields represented three of five industries constituting the sector.

Actionable Conclusions: Analysts Projected 5 Lowest-Priced of the Top Ten Highest-Yield Utilities Dogs (23) Delivering 11.51% Vs. (24) 14.37% Net Gains by All Ten by April, 2019

$5000 invested as $1k in each of the five lowest-priced stocks in the top ten Dividend Utilities kennel by yield were predicted by analyst 1-year targets to deliver 19.86% LESS gain than $5,000 invested as $.5k in all of those ten. The eighth lowest priced Utilities top yield stock, Pattern Energy Group (PEGI), was projected to deliver the best net gain of 31.6%.

The five lowest-priced utilities as of April 9 were: Centrais Eletricas (EBR.B); Power Assets Holdings (OTCPK:HGKGY); Endesa SA (OTCPK:ELEZY); TerraForm Power (TERP); 8point3 Energy Partners (CAFD), with prices ranging from $6.26 to $12.05.

Five higher-priced Utilities for April 9 were: NRG Yield (NYLD.A), NRG Yield (NYLD), Pattern Energy Group (PEGI), Cia de Transmissao de (OTCPK:CTPZY), and AmeriGas Partners (APU), whose prices ranged from $16.93 to $40.36.

The distinction between five low-priced dividend stocks and the general field of ten reflected Michael B. O'Higgins' "basic method" for beating the Dow. The scale of projected gains based on analyst targets added a unique element of "market sentiment" gauging upside potential. It provided a here-and-now equivalent of waiting a year to find out what might happen in the market. Caution is advised, since analysts are historically only 20% to 80% accurate on the direction of change and just 0% to 20% accurate on the degree of change.

See my instablog for specific instructions about how to best apply the dividend dog data featured in this article, this glossary instablog to interpret my abbreviated headings, and this instablog to aid your safe investing. --Fredrik Arnold

The net gain/loss estimates above did not factor in any foreign or domestic tax problems resulting from distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.

Stocks listed above were suggested only as possible reference points for your Utilities dog stock purchase or sale research process. These were not recommendations.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.

Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.indexarb.com; YCharts.com; finance.yahoo.com; analyst mean target price by Thomson/First Call in YahooFinance. Dog photo: cesarsway.com

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.