#5: Pepco Holdings (POM)
Utilities like Pepco Holdings (POM) are bedrock dividend stocks, but those low natural gas prices sure are making it hard on them. As noted above with Entergy, there’s a strong correlation between prices for natural gas and electric power, and that’s making life tough for the entire sector.
POM stock is off 2.6% for the last 52 weeks. Add in the dividend and the total return comes to just 4% Meanwhile, the total return on the S&P 500 comes to a whopping 28% over the same span.
Of course, you don’t own a utility for price appreciation. That 5.8% yield on the dividend sure looks good for an income stream, and the extremely low volatility of POM stock adds another layer of defense.