Custom Search


Portfolio of Dividend-Paying Electric Utilities Stocks

Well-managed electric utilities are excellent candidates for a dividend reinvestment portfolio. Typically, electric utilities generate lots of excess cash and pay it out as dividends to shareholders.


Look for a company that has consistent earnings growth, a long history of rising dividends and a reasonable payout ratio, which is the ratio of dividends to earnings. A low payout ratio (less than 70 percent) indicates the possibility of future dividend increases. A very high payout ratio (greater than 90 percent) may not be sustainable and may signal a dividend cut in the future.

If the dividend yield (annual dividend divided by stock price) is very high (greater than six or seven percent) the company may have problems - the high yield may be due to a low stock price. Be very wary of stocks with high dividend yields and high payout ratios.

The following table includes 9 electric utilities that have multiyear histories of increasing their dividends. These stocks are worth considering for a dividend reinvestment portfolio.

Dividend-Paying Electric Utilities Stocks
Stock
Quote
Annual Dividend & Yield
Annual Dividend 100 Shares
1-Yr Price Chart
American Electric Power
2.36 (3.30%)
$236.00
Consolidated Edison
2.76 (3.38%)
$276.00
Dominion Resources
3.02 (3.87%)
$302.00
Duke Energy
3.56 (4.14%)
$356.00
Entergy
3.48 (4.60%)
$348.00
Hawaiian Electric Industries
1.24 (3.62%)
$124.00
PPL Corporation
1.58 (4.27%)
$158.00
Southern Energy
2.32 (4.64%)
$232.00
Wisconsin Energy
2.08 (3.25%)
$208.00
Sum Dividends
$2,240.00
Dividend yield data from Yahoo! Finance as of Oct-14-2017. Price and dividend data from Quandl.


To inspect the performance of the Dividend-Paying Electric Utilities Stocks portfolio, see the returns table and chart below. Portfolio values are computed using quarterly closes for from Quandl.

All 9 are included in the portfolio computations. The current value of the portfolio assumes that $1,111.11 was invested (total of $10,000) in each at its closing weekly price for the current date in 2007.


Dividend-Paying Electric Utilities Stocks - Return Results
Portfolio:
Dividend-Paying Electric Utilities Stocks
Start date:
Oct-23-2007
Start value:
$10,000
End date:
Oct-23-2017
End value:
$24,236
Number prices
41
Minimum value occurred on Mar-31-2009
$7,183
Maximum value occurred on Dec-31-2017
$24,236
Total gain or loss (Start date to End date)
142.36%
Annualized gain or loss (Start date to End date)
207.34%
Total dollar value on End date of a $10,000 purchase made on Start date
$24,236
Average percent return for all possible buy/sell combinations
51.01%
Number returns
820
Number profitable returns (Winners)
730
Percent profitable returns
89.02%
Number unprofitable returns (Losers)
90
Percent unprofitable returns
10.98%
Winners to losers ratio
8.11
Stock Return Calculator


Click chart to enlarge it.



Related Articles

Electric, Gas and Water Utilities Stocks (A-Z)
Portfolio of Diversified Utilities Stocks
Portfolio of Dow Jones Utility Average Stocks
Portfolio of Electric Utilities With Nuclear Power Plants
Portfolio of High-Yield Electric Utilities Stocks
Portfolio of Hydroelectric Power Stocks
Portfolio of Dividend-Paying Natural Gas Utilities Stocks
Portfolio of Utilities Select Sector SPDR Fund Stocks
Portfolio of Dividend-Paying Water Utilities Stocks
Stock Returns: Selected Utilities Stocks
Utilities Exchange-Traded Funds (ETFs)