Dividend Yield: 4.1%
Consolidated Edison (ED) hasn’t really gone anywhere since early 2012 as the market has gotten a bit more “risk on.” But investors in utility stocks like ConEd shouldn’t ever expect big fireworks and huge share-price appreciation.
After all, utilities are highly regulated companies with geographic monopolies. It’s almost impossible for them to grow short of acquiring a neighboring electricity provider.
But as a low-risk investor, this barrier to growth should be seen as a high wall to competition, too. After all, when is the last time you heard of a new utility company rolling into town and poaching the old power provider’s customers?
ConEd is entrenched and a well-oiled dividend machine. The company has paid dividends in some form since 1885 and payouts are up about 10% in the last decade. The current yield for ED is 4.1%.