Todays Stock Market – Top Utility Stocks with High Dividends
Utility stocks are within the top most reliable investments to The Wall Street. Electricity being a necessity has a strong baseline demand. Utility stocks are a highly regulated industry. This means that getting closer to a legalized monopoly are a good thing for there are high demands with low competition. But expecting growth will never be easy. It wouldn’t be similar to a regional electric utility having double revenue from a bunch of demands or a speedy rate increase.
Still, investors look for a massive profit, considering the fact that a lot of utility stocks surpass their usual portion of profits to their shareholders. Let’s list down and elaborate the top utility stocks which profit high.
Current production: 5.1%
This utility stock isn’t as rosy like other utilities, yet it may give a buying opportunity for investors. The current pricing drives the company’s dividend yield up to just north of 5%.
A failure in their “clean coal” project in Mississippi facility resulted in a bad public image for the company which forced them to regress to natural gas generation. But this short-time failure won’t let the regional powerhouse down too long.
Current production: 4.6%
Dominion’s headquarter is in Virginia is a diversified utility stock with a big mark in the industry. Dominion serves around 6 million consumers with their natural gas and electricity productions. The company generates electricity production from hydro, solar, gas, coal and oil. During their all-stock merger proposal with South Carolina utility SCANA, Dominion almost hit rock bottom.
Lately, the companies took steps to final approval of the offer to freeze rates close to the deal. The development on the deal is quite slow, in addition to all those red tapes and public hearings. Still, the deal seems to benefit for long-term investors.
Duke Energy Corp
Current production: 4.4%
This is another giant electric utility with high profits. Their Headquarter is in North Carolina, having a market capitalization going beyond $60 billion. Duke Energy Corp serves a huge area from Florida going through the Carolinas towards Kentucky and Tennessee. Duke is a diversified corporation not just having an electricity generation but with natural gas storage and distribution.
Years ago, Duke Corporation was in crosshairs, but with the help of reliance on coal-powered plants, a more favorable regulatory environment allowed them to stabilize. With almost a century of uninterrupted profits, income investors can now rely on Duke.
American Electric Power Co.
Current production: 3.5%
This is another stable utility stock, providing electricity to 5 million customers across eleven states with a market value of $40 billion. Their huge profit came from the hot weather during the first half of the year 2018 in Ohio that eventually increased the demand of their product.
In addition, the strong management within the company resulted in their great run, profiting hugely for four consecutive earnings. American Electric Power outperforms broad of the S&P 500 Index.
Current production: 3.2%
This is a rare multinational company, providing energy services to more than forty million customers within Southern California and Texas and Latin American regions including Peru and Chile.
Sempra’s business is still doing quite well in the year 2018, according to their measured earnings and revenue. The diversification across geographies and energy classes help to smooth things out for the company. The company also made big investments within their liquid natural gas business, complimenting their traditional electricity.
Current production: 3%
Exelon Corp has more than 10% profit for the year 2018, adding up to their substantial dividend. Exelon Corp is a $45 billion electric utility which is smaller compared to other utility stocks on this list. With Chicago as its main location, EXC is serving the wide swath of Northeast, starting from the New Jersey towards Illinois. Profiting trends are quite higher not including their one-off event profit. That makes investors confident that Exelon Corp will be well and operational in the long run.
Current production: 2.4%
This is one of the largest utility stocks in the United States by market capitalization. This utility stock now has a value of about $85 billion. In fact, it is one of the best performing stocks on its sector, gaining about 15 percent for this year. NextEra Energy also invests in wind, solar, and nuclear as sources of power.
Their developing battery storage business also provides them with a smooth generating time bounded by renewable energy. In comparison with other top utility stocks listed on this post, NextEra Energy assembles less. But their potential growth is high, and it has the ability to provide extra.