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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
Annual Dividend & Yield
Annual Dividend 100 Shares
1-Yr Price Chart
American Electric Power
2.36 (3.30%)
Consolidated Edison
2.76 (3.38%)
Dominion Resources
3.02 (3.87%)
Duke Energy
3.56 (4.14%)
3.48 (4.60%)
Hawaiian Electric Industries
1.24 (3.62%)
PPL Corporation
1.58 (4.27%)
Southern Energy
2.32 (4.64%)
Wisconsin Energy
2.08 (3.25%)
Sum Dividends
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
Dividend-Paying Electric Utilities Stocks
Start date:
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End date:
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Number prices
Minimum value occurred on Mar-31-2009
Maximum value occurred on Dec-31-2017
Total gain or loss (Start date to End date)
Annualized gain or loss (Start date to End date)
Total dollar value on End date of a $10,000 purchase made on Start date
Average percent return for all possible buy/sell combinations
Number returns
Number profitable returns (Winners)
Percent profitable returns
Number unprofitable returns (Losers)
Percent unprofitable returns
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Stock Return Calculator

Click chart to enlarge it.

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