Eight Juicy Electric Utility Dividends That Merit a Look

Electric utility stocks had the good manners to tank along with the broader market in recent days, so if you’re value hunting among the wreckage – and also looking for some income via dividends – there are some stocks worth looking into. Utilities that entered the current environment in strong financial condition and with good earnings coverage on their dividends should sail through the economic unpleasantness relatively unscathed. Sure, with the potential for a double-dip recession looming, some electric companies could see revenue declines, and if that persists it could threaten payouts. But for the most part these are resilient companies. Here are the price declines:

Empire District Electric Price Stock Chart

Empire District Electric Price Stock Chart by YCharts

PPL Corporation Price Stock Chart

PPL Corporation Price Stock Chart by YCharts

Using the YCharts Sectors pages, we looked for electric utilities with dividends of more than 5%, or at least close to that, and several of those were also viewed as attractive by YCharts Pro. Across industries, those hunting for fat dividend yields can use the YCharts screening tool.

1. Empire District Electric (EDE) – It’s good we look at this one first, because it’s got problems. Significant tornado damage in Missouri knocked flat a lot of Empire customers, who aren’t now buying the company’s juice. Empire thus suspended its dividend for the third and fourth quarters of this year, and expects to reinstate the payout at 25 cents, down from the former 32 cents. Investors weren’t too crazy about the dividend suspension.

Empire District Electric Price Stock Chart

Empire District Electric Price Stock Chart by YCharts

2. Duke Energy (DUK) looks better, with decent dividend coverage and rising revenue.

Duke Energy Corporation Dividend Stock Chart

Duke Energy Corporation Dividend Stock Chart by YCharts

3. Hawaiian Electric (HE) has rising revenues, too, but its dividend payout coverage is poor. That makes the payout more vulnerable to a downturn.

Hawaiian Electric Industries Dividend Stock Chart

Hawaiian Electric Industries Dividend Stock Chart by YCharts

4. Entergy’s (ETR) revenue has been up and down, but the utility’s dividend is exceedingly well covered by profit. The daylight one sees on this chart allows for a good night’s sleep.

Entergy Corporation Dividend Stock Chart

Entergy Corporation Dividend Stock Chart by YCharts

5. PPL (PPL) revenue has snapped back lately, and the dividend is well covered.

PPL Corporation Dividend Stock Chart

PPL Corporation Dividend Stock Chart by YCharts

6. American Electric (AEP) has reported rising revenue and its dividend is well covered.

American Electric Power Company Dividend Stock Chart

American Electric Power Company Dividend Stock Chart by YCharts

7. Black Hills’ (BKH) revenue has been flat in recent quarters and its generous payout isn’t well covered by earnings. So that’s a warning sign.

Black Hills Corporation Dividend Stock Chart

Black Hills Corporation Dividend Stock Chart by YCharts

8. DTE’s (DTE) revenue has been rising modestly, but worries are few because the dividend is well covered.

DTE Energy Company Dividend Stock Chart

DTE Energy Company Dividend Stock Chart by YCharts

Jeff Bailey is an editor for the YCharts Pro Investor Service which includes professional stock charts, stock ratings and portfolio strategies.

Read more articles about: Investing Ideas  

blog comments powered by Disqus
Advertisement

Search Articles

Subscribe to YCharts Analysis

Advertisement

{{root.upsell.info.feature_headline}}.

{{root.upsell.info.feature_description}}
Start your free 14 Day Trial.

{{root.upsell.info.button_text}} No credit card required.

Already a subscriber? Sign in.