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:
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.
2. Duke Energy (DUK) looks better, with decent dividend coverage and rising revenue.
3. Hawaiian Electric (HE) has rising revenues, too, but its dividend payout coverage is poor. That makes the payout more vulnerable to a downturn.
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.
5. PPL (PPL) revenue has snapped back lately, and the dividend is well covered.
6. American Electric (AEP) has reported rising revenue and its dividend is well covered.
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.
8. DTE’s (DTE) revenue has been rising modestly, but worries are few because the dividend is well covered.
Read more articles about: Investing Ideas
- pharma stocks
- tech stocks
- stocks that look cheap
- stocks that look pricey
- money managers
- value investing
- retail stocks
- dividend growth
- stock buybacks
- growth stocks
- energy stocks
- earnings season
- income investing
- warren buffett
- bank stocks
- stock screener
- short sellers
- dividend yield
- dividend yields
- healthcare stocks
- federal reserve
- interest rates
- executive compensation