Portfolio of 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 12 electric utilities that have multiyear histories of increasing their dividends. These stocks are worth considering for a dividend reinvestment portfolio.


12 Dividend-Paying Electric Utilities Stocks

Stock Return & Price Chart

Symbol

Dividend (Yield)&
Returns

Recent Dividends

American Electric Power AEP$2.80 (3.75%)
Consolidated EdisonED$3.06 (3.94%)
Dominion ResourcesD$3.76 (5.38%)
Duke EnergyDUK$3.78 (4.87%)
EntergyETR$3.72 (4.35%)
Eversource EnergyES$2.27 (2.99%)
Hawaiian Electric IndustriesHE$1.32 (3.27%)
NextEra EnergyNEE$5.60 (2.57%)
PPL CorporationPPL$1.66 (7.25%)
Southern EnergySO$2.48 (4.95%)
Wisconsin EnergyWEC$2.53 (3.03%)
Xcel EnergyXEL$1.72 (2.96%)
Dividend data from Quandl as of Apr-02-2020.


12 Dividend-Paying Electric Utilities Stocks

Stock Returns & Price Chart

Symbol

Recent Prices &
Annualized Return

American Electric Power AEP
Consolidated EdisonED
Dominion ResourcesD
Duke EnergyDUK
EntergyETR
Eversource EnergyES
Hawaiian Electric IndustriesHE
NextEra EnergyNEE
PPL CorporationPPL
Southern EnergySO
Wisconsin EnergyWEC
Xcel EnergyXEL
Price chart data from Quandl as of most recent close.


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

All 12 stocks are included in the portfolio computations. The current value of the portfolio assumes that $833.33 was invested (total of $10,000) in each stock at its closing monthly price for the first date shown on the portfolio value chart below. All prices are adjusted for splits and dividends.

The current value of a $10,000 investment is $30,593. The percent return is 205.93%. The annualized return is 11.83%.



Return Summary for Dividend-Paying Electric Utilities Stocks
Start DateApr-30-2010
Start Investment$10,000.00
End DateApr-03-2020
Current Value of Investment$30,593.25
Total Return205.93%
Annualized Return11.83%
Min DateMay-28-2010
Min Price$9,556.84
Max DateJan-31-2020
Max Price$38,862.07
# Monthly Prices121
Number Returns7,260
Number Profitable Returns7,033
Percent Profitable Returns96.87%
Number Unprofitable Returns227
Percent Unprofitable Returns3.13%
Profitable to Unprofitable Returns Ratio30.98
Use Stock Return Calculator to compute returns for individual stocks.


NOTE: The stocks included in the tables and chart are representative of the industry. They are not recommendations.

Use Stock Symbol and Stock Portfolio Finder to find a stock in a buyupside.com portfolio.

See Portfolio of Dividend Income Stocks: Electric Utilities.

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