10 High Dividend Energy Stocks With Strong Fundamentals

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Includes: AEP, DUK, ED, EPB, ETR, EXC, PEG, PPL, SCG, SO
by: Dividendinvestr

Defensive investors like high dividend stocks, since they believe these stocks can protect them from potential inflation. Energy companies are good examples of defensive stocks with generally high and stable yields. We like energy stocks for a few reasons. They provide protection against inflation and a decline in the value of the dollar. Everyone is a consumer of energy, and investors hedge their exposure by initiating positions in energy companies. If the price of oil climbs, they pay more at the pump, but they also have capital gains, which offsets the effects of higher oil prices. Finally, we like energy stocks because the thirst for energy keeps growing globally, especially in the fast-growing emerging markets.

Below, I prepared a list of 10 energy companies that pay fat dividend checks and have low P/E ratios. All of the companies on this list have a market capitalization above $5 billion, trailing and forward P/E ratios of lower than 20, beta of lower than 0.6 and dividend yield of at least 4%. I obtained 10-Year Summary data from Morningstar and all other market data from Finviz.

Stock

Market Cap
(Billion $)

Dividend Yield

P/E

Beta

Payout Ratio

Profit Margin

American Electric Power (NYSE:AEP)

21.3

4.3%

14.8

0.49

63.6%

9.6%

Duke Energy (NYSE:DUK)

45.8

4.7%

19.4

0.33

91.2%

10.4%

Consolidated Edison (NYSE:ED)

17.6

4.0%

16.6

0.22

66.4%

8.6%

El Paso Pipeline (NYSE:EPB)

7.9

6.4%

17.7

0.23

113.3%

36.5%

Entergy (NYSE:ETR)

12.8

4.6%

12.9

0.5

59.3%

9.4%

Exelon (NYSE:EXC)

30.3

5.9%

14.6

0.51

86.1%

8.5%

Public Service Enterprise (NYSE:PEG)

16.1

4.5%

12.1

0.43

54.5%

13.0%

PPL Corporation (NYSE:PPL)

17.1

4.9%

10.0

0.39

49.0%

12.4%

SCANA (NYSE:SCG)

6.3

4.1%

16.2

0.51

66.4%

9.6%

Southern Company (NYSE:SO)

40.2

4.2%

18.7

0.26

78.5%

13.2%

American Electric Power recently traded at $43.95 and has a 4.3% dividend yield. AEP gained 16% during the past 12 months. The stock has a market cap of $21.3 billion, P/E ratio of 14.8 and Total Debt/Equity ratio of 1.2. AEP also had an EPS growth rate of 5.4% during the last five years.

Duke Energy recently traded at $65.11 and has a 4.7% dividend yield. DUK gained 10.2% during the past 12 months. The stock has a market cap of $45.8 billion, P/E ratio of 19.4 and Total Debt/Equity ratio of 0.95. DUK also had an EPS growth rate of 7.1% during the last five years.

Consolidated Edison recently traded at $59.97 and has a 4% dividend yield. ED gained 4.9% during the past 12 months. The stock has a market cap of $17.6 billion, P/E ratio of 16.6 and Total Debt/Equity ratio of 1.03. ED also had an EPS growth rate of 3.8% during the last five years.

El Paso Pipeline Partners recently traded at $36.13 and has a 6.4% dividend yield. EPB gained 12% during the past 12 months. The stock has a market cap of $7.9 billion, P/E ratio of 17.7 and Total Debt/Equity ratio of 2.2. EPB also had an EPS growth rate of 12.3% during the last five years.

Entergy recently traded at $72.1 and has a 4.6% dividend yield. ETR gained 8.6% during the past 12 months. The stock has a market cap of $12.8 billion, P/E ratio of 12.9 and Total Debt/Equity ratio of 1.35. ETR also had an EPS growth rate of 7.1% during the last five years.

Exelon recently traded at $35.49 and has a 5.9% dividend yield. EXC lost 15.8% during the past 12 months. The stock has a market cap of $30.3 billion, P/E ratio of 14.6 and Total Debt/Equity ratio of 0.88. EXC also had an EPS growth rate of 9.8% during the last five years.

Public Service Enterprise recently traded at $31.74 and has a 4.5% dividend yield. PEG lost 3.6% during the past 12 months. The stock has a market cap of $16.1 billion, P/E ratio of 12.1 and Total Debt/Equity ratio of 0.79. PEG also had an EPS growth rate of 15.8% during the last five years.

PPL recently traded at $29.49 and has a 4.9% dividend yield. PPL gained 5.4% during the past 12 months. The stock has a market cap of $17.1 billion, P/E ratio of 10 and Total Debt/Equity ratio of 1.79. PPL also had an EPS growth rate of 4.5% during the last five years.

SCANA recently traded at $48.64 and has a 4.1% dividend yield. SCG gained 18.5% during the past 12 months. The stock has a market cap of $6.3 billion, P/E ratio of 16.2 and Total Debt/Equity ratio of 1.38. SCG also had an EPS growth rate of 2.5% during the last five years.

Southern Company recently traded at $46.33 and has a 4.2% dividend yield. SO gained 10.8% during the past 12 months. The stock has a market cap of $40.2 billion, P/E ratio of 18.7 and Total Debt/Equity ratio of 1.14. SO also had an EPS growth rate of 3.9% during the last five years.

Disclosure: I 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.

Additional disclosure: Dividendinvestr is a team of analysts. This article was written by Serkan Unal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

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