Dominion Resources (D)
Market Cap: $41 billion
Dividend Yield: 3.4%
Public utility companies, with their stable base of ratepayers, have long been important for investors seeking dividend yield. That said, Dominion Resources (D) is also a play on growth. The company also is diversifying its power-generation portfolio by buying into six solar projects in California.
D stock is the epitome of a stable investment, with a puny beta of only 0.05. But as investors fled tough economic times for safety and stability, many of these low-beta stocks have become extremely overbought. Consider Dominion’s market peer, Pepco Holdings (POM), which has a P/E of 46.1 — more than double the industry average and far higher than its own five-year average of 24.3. However, D stock has a P/E of 22.4 — in line with the industry average and considerably below its five-year average P/E of 32.
So if you’re looking load up your retirement portfolio with stable dividend stocks (and you should be), it’s tough to beat these three picks.
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As of this writing, Susan J. Aluise did not hold a position in any of the aforementioned securities.