Dividend Stock #10 Unisource Energy (UNS)
Unisource Energy (NYSE: UNS) is an energy utility based in Arizona that provides gas and electric service in the Southwest across some 1,200 square miles.
- Current Yield: 4.5% ($1.68 a share annually)
- Dividend History: In June 2010, Unisource paid a quarterly dividend of 39 cents a share. This June, it will pay 42 cents, or a nearly 8% increase.
- Dividend Outlook: According to Bloomberg, Unisource has a very impressive three-year dividend growth rate expected to be 16.9%.
- Recent Performance: UNS stock has basically tracked the market over the last year or so, but more importantly, this low-risk utility has added about 25% in the last five years — more than double the Dow.
- Strong Outlook for Shares: While there’s nothing to indicate this utility will blow the doors off in 2011, Unisource is a low-risk income investment that has seen good revenue growth from 2009 to 2010, and is on track for another solid year. Shares are approaching a new 52-week high and could continue to march higher.