Portfolio of Dividend Income Stocks: Electric Utilities

Well-managed electric utilities are excellent candidates for a stock income 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 Electric Utilities

Stock Return & Price Chart

Symbol

Dividend (Yield)&
Returns

Recent Dividends

American Electric Power AEP$2.80 (3.86%)
Consolidated EdisonED$3.06 (3.93%)
Dominion ResourcesD$3.76 (5.41%)
Duke EnergyDUK$3.78 (4.97%)
EntergyETR$3.72 (4.46%)
Eversource EnergyES$2.27 (3.03%)
Hawaiian Electric IndustriesHE$1.32 (3.30%)
NextEra EnergyNEE$5.60 (2.53%)
PPL CorporationPPL$1.66 (7.63%)
Southern EnergySO$2.48 (4.93%)
Wisconsin EnergyWEC$2.53 (2.97%)
Xcel EnergyXEL$1.72 (2.97%)
Dividend data from Quandl as of Apr-05-2020.


12 Electric Utilities

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.




See Portfolio of Electric Utilities Stocks.

See Dividend Income Stocks Portfolio Builder: Utilities.

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