3 utilities that love to light up their dividends
TRANSCRIPT
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Hi, My name is Aaron and I‘m with Dividend Stocks Research, and today
were reviewing our recently published article…
Looking for a utility company that’s not shy about paying a decent
dividend?
Here are three that each pay a yield above the 4.5% mark... and none of them come with the risk of a high payout ratio that can easily send
future dividends plunging.
You get a little something thrown in when you invest in Hawaii’s #1
electric utility company.
A bank.
Hawaiian Electric Industries (HE)
That’s because Hawaiian Electric (HE) owns one of the Hawaii’s top 5
banks, American Savings Bank.
And you also get a good deal, because the Hawaiian Electric stock
price has been skidding over the past year.
Hawaiian Electric Industries (HE)
What’s the trouble in paradise? The bank’s performance hasn’t been that
great.
But utility revenues are strong and costs are being managed well.
Hawaiian Electric Industries (HE)
We like HE and the big mutual funds like Hawaiian Electric too...
Vanguard and Fidelity are the utility’s two largest shareholders.
Dividend Yield: 5.10%Annual Payout: 1.24Payout Ratio: 76.5%
The air conditioners keep blasting away.
People in Tampa keep sending checks into Tampa Electric every
month.
TECO Energy, Inc. (TE)
And investors in TECO Energy, Inc. (TE) keep piling up the dividends.
But what about when the weather turns cold?
Well, it turns out a chilly Florida winter had people cranking up the thermostats
so Tampa Electric cranked out some strong earnings to start off 2014.
TECO Energy, Inc. (TE)
Any concerns about this dividend paying utility stock?
Not really, unless you’re worried that the coal mines it owns in
Kentucky and Virginia could be hit with tough new regulatory fees.
TECO Energy, Inc. (TE)
The risk is coal prices going down too much. The company’s coal business drives 17.4% of its
revenues. Dividend Yield: 4.86%Annual Payout: .88
Payout Ratio: 86.3%
You know where the General Electric corporate headquarters is?
Fairfield, Connecticut. A quiet town served by a quiet utility company that’s been in the power business
for more than a hundred years.
UIL Holdings (UIL)The United Illuminating Company is part of UIL Holdings (UI). UIL also owns the Connecticut Natural Gas
Corporation, The Southern Connecticut Gas Company, and The
Berkshire Gas Company.Roll them up, and what do you see
when you look under the hood at the financials?
UIL Holdings (UIL)
Some solid performance. Earnings per share are up over the past 5
quarters.
The good news for you... most investors haven’t noticed.
But the stock price is down more than 10% over the past year.
UIL Holdings (UIL)
So here’s what’s going on. A shaky balance sheet is scaring off a lot of investors who would otherwise be
all over UIL.
UIL Holdings (UIL)
While most investors see a lot of debt, which we see too, we’re impressed by the utility’s cash
position. In less than a year, it’s soared by more than $100 million ,
so we’re ready for better times ahead.
Dividend Yield: 4.69%Annual Payout: 1.73Payout Ratio: 75.9%
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