Utility Stocks – By Yield
By: Tim McPartland,
Historically utility stocks (including electric utilities, gas utilities and water utilities) have provided a way for a conservative investor to not only garner a reasonable dividend, but have an opportunity to secure a reasonable capital gain on the share price.
Below we have listed all the utility stocks that are available for purchase. While virtually all the stocks listed below are U.S. stocks there are a few that are foreign that are traded on the New York stock exchange listed.
In the period of 2008 to 2014 the price of utility stocks rose substantially as investors were unable to garner any real interest on investments like CD’s and money markets and instead invested in what they perceived to be relatively safe stocks (utility stocks) that paid a reasonable dividend. Because of this rush into utility stocks the dividends are now in the 2-5% range (with a few a bit below and a few a bit above this range)–no longer super yields (although certainly better than money markets).
Like all stocks it pays to go to the company website and understand their business a bit before purchasing shares. For instance does a given electric generation utility generate their power from clean natural gas OR do they generate most of their power from dirty (and hated by many) coal? It pays to know these items as the coal burners may need to be upgraded or abandoned meaning substantial capital will be needed to invest and that their cost to generate electricity may rise sharply cutting their margins.
NOTE–the top 2 yielding companies on our list are Canadian Companies and operate under a somewhat different model than U.S. utilities. Please research and understand the methods to determine dividends with these companies.
Dividends Updated on 3/10/2019