7 Utility Stocks With Big Dividends

by Louis Navellier | March 8, 2012 6:30 am

Dividend stocks were the big story of 2011, with tobacco and utility stocks outperforming. But don’t think it’s time to pull the plug on your utility investments. There are a host of utilities that get top marks, as well as dishing up a big dividend to boot.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. This week: seven electric utilities stocks to buy.

Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”

American Electric Power (NYSE:AEP[2]) owns numerous power companies across the U.S. In the last year, AEP has gained a modest 8%. AEP gets a “B” grade for operating margin growth, a “B” grade for earnings growth and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of AEP[3]. AEP yields a 4.9% dividend.

Duke Energy Corp. (NYSE:DUK[4]) is an energy company that works in the Americas. DUK is up 16% in the last year, compared to the Dow Jones, which has gained only 5% in the same time. DUK gets a “B” grade for operating margin growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “B” grade for the magnitude in which earnings projections have. For more information, view my complete analysis of DUK[5]. Duke Energy yields a 4.7% dividend.

FirstEnergy Corp. (NYSE:FE[6]) owns eight energy companies throughout the U.S. Since last March, FE has jumped 21%. FirstEnergy gets a “B” grade for sales growth, an “A” grade for earnings momentum and a “B” grade for the magnitude in which earnings projections have increased over the past months in my Portfolio Grader tool. For more information, view my complete analysis of FE[7]. FirstEnergy has a 5.0% dividend.

NextEra Energy Inc. (NYSE:NEE[8]) is an American electric power company that was formerly known as FPL Group Inc. NEE has climbed 9% in the last 12 months. NEE gets an “A” grade for earnings growth, an “A” grade for earnings momentum and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of NEE[9]

. NEE yields 4.0%.

Pepco Holdings Inc. (NYSE:POM[10]) is involved with the transmission, distribution and supply of electricity and the distribution and supply of natural gas. Since last year, POM is up 3%. Pepco stock gets an “A” grade for earnings growth and an “A” grade for earnings momentum in my Portfolio Grader tool. For more information, view my complete analysis of PO[11]. Pepco pays a 5.5% dividend.

PPL Corp. (NYSE:PPL[12]) is an energy and utility holding company that has reported an 11% gain since this time last March. PPL stock gets an “A” grade for sales growth, an “A” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of PPL[13]. PPL yields 5.2%.

Southern Co. (NYSE:SO[14]) owns numerous power companies throughout the Southeast. SO rounds out the list with a gain of 18% in the last 12 months. SO gets a “B” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for earnings momentum and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of SO[15]. The dividend for Southern Co. is 4.2%.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[16] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

Source URL: https://investorplace.com/2012/03/7-utility-stocks-with-big-dividends/

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