10 Utility Stocks to Power Your Portfolio

by Portfolio Grader | May 4, 2012 9:00 am

10 Utility Stocks to Power Your Portfolio

electrical outlet 630 150x150 10 Utility Stocks to Power Your Portfolio[1]Utility stocks are favorites among the income investing crowd because of their high dividend yield. But don’t think that you can’t get decent share appreciation in these companies, too. A good dividend and a nice 5-10% annually in share appreciation can serve your portfolio very well.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[2] tool, ranking companies by a number of fundamental and quantitative measures. And this week, here are 10 utility 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 (NYSE:AEP[3]) owns power companies across the U.S. In the last 12 months, AEP stock has gained 7% compared to smaller gains by the broader markets. AEP stock has a dividend yield of 4.8%. AEP stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth and a “B” grade for return on equity. For more information, view my complete analysis of AEP stock[4].

Consolidated Edison (NYSE:ED[5]) delivers electricity, natural gas and steam to customers in New York. In the last year, ConEd stock is up 13% and has a dividend yield of 4.1%. ED stock gets a “B” grade for operating margin growth. For more information, view my complete analysis of ED stock[6].

Dominion Resources (NYSE:D[7]) is a producer and transporter of energy that has reported a 12% gain in the last 12 months. Dominon stock has a dividend yield of 4.1%. D stock gets an “A” grade for earnings momentum and a “B” grade for return on equity. For more information, view my complete analysis of D stock[8].

Duke Energy (NYSE:DUK[9]) serves four million customers in the Southeast and Midwest U.S. Since last May, Duke Energy stock has gained 14% and yielded a dividend of 4.7%. DUK stock gets a “B” grade for operating margin growth and a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of DUK stock[10].

FirstEnergy (NYSE:FE[11]) owns energy companies throughout the U.S. and has gained 19% since this time last year. FirstEnergy stock has a dividend yield of 4.7% and 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. For more information, view my complete analysis of FE stock.[12]

National Grid (NYSE:NGG[13]) is an international electricity and gas company that primarily serves customers in New England and New York. National Grid stock is up 12% since the start of 2012. NGG stock also boasts a dividend yield of 5.5%. NGG stock gets an “A” grade for operating margin growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow and an “A” grade for return on equity. For more information, view my complete analysis of NGG stock.[14]

NextEra Energy Inc. (NYSE:NEE[15]) is an energy company that operates in 24 states in the United States and three provinces in Canada. Since last May, NEE stock has jumped 13% and yielded a dividend of 3.8%. NextEra stock gets a “B” grade for sales growth, 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 stock[16].

Sempra Energy (NYSE:SRE[17]) is another energy holding company on the list that has climbed 16% in the last four months. Sempra stock also has a dividend yield of 3.8%. SRE stock gets an “A” grade for operating margin growth and a “B” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of SRE stock[18].

Southern (NYSE:SO[19]) owns power companies throughout the Southeast U.S. In the last 12 months, SO stock has posted a gain of 18%. Shareholders are also given a dividend yield of 4.2%. Southern Co. stock gets a “B” grade for operating margin growth, an “A” grade for earnings growth and a “B” grade for return on equity. For more information, view my complete analysis of SO stock[20].

Xcel Energy (NYSE:XEL[21]) serves electric and natural gas customers in eight states and is up 10% since last May. Xcel stock pays a dividend yield of 3.9%. XEL stock gets a “B” grade for operating margin growth and a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of XEL stock[22].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[23] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/10/electrical-outlet-630.jpg
  2. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  3. AEP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AEP
  4. For more information, view my complete analysis of AEP stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=aep&submit=submit&type=site
  5. ED: http://studio-5.financialcontent.com/investplace/quote?Symbol=ED
  6. For more information, view my complete analysis of ED stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ed&submit=submit&type=site
  7. D: http://studio-5.financialcontent.com/investplace/quote?Symbol=D
  8. For more information, view my complete analysis of D stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=d&submit=submit&type=site
  9. DUK: http://studio-5.financialcontent.com/investplace/quote?Symbol=DUK
  10. For more information, view my complete analysis of DUK stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=duk&submit=submit&type=site
  11. FE: http://studio-5.financialcontent.com/investplace/quote?Symbol=FE
  12. For more information, view my complete analysis of FE stock.: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=fe&submit=submit&type=site
  13. NGG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NGG
  14. For more information, view my complete analysis of NGG stock.: http://navelliergrowth.investorplace.com/portfolio-grader/report-card.html
  15. NEE: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEE
  16. For more information, view my complete analysis of NEE stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=nee&submit=submit&type=site
  17. SRE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SRE
  18. For more information, view my complete analysis of SRE stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=sre&submit=submit&type=site
  19. SO: http://studio-5.financialcontent.com/investplace/quote?Symbol=SO
  20. For more information, view my complete analysis of SO stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=so&submit=submit&type=site
  21. XEL: http://studio-5.financialcontent.com/investplace/quote?Symbol=XEL
  22. For more information, view my complete analysis of XEL stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=xel&submit=submit&type=site
  23. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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