If you’re looking for high yield dividend stocks, look no further than the utility sector. Utilities by their nature have reliable revenue streams, essentially operating as legal monopolies for power generation and distribution. That means utility stocks are largely insulated from the ups and downs of Wall Street – and thus have the stable balance sheets necessary to offer up consistant, high yield dividends.
Here are 11 high-yield dividend stocks that are not just offering plump dividends, but also seeing fairly good share appreciation in 2010. This one-two punch makes these high yield dividend stocks worth a look for any investing strategy:
Southern Co. (SO)
Market Cap: $ 30.2 billion
Dividend Yield: 5.1%
The Southern Company (NYSE: SO) owns all of the outstanding common stock for a number of operating public utility companies, including, Alabama Power, Georgia Power, Gulf Power and Mississippi Power. Southern also owns the common stock for several other types of companies, including nuclear energy companies and renewable energy companies. Since January, Southern has seen a +9.6% increase in stock price. This compares favorably to the broader markets, which have all remained close to even. With an annual dividend of $1.82 this utility stock is rewarding its shareholders with a 5.1% yield.
Dominion Resources Inc (D)
Market Cap: $25.7 billion
Dividend Yield: 4.3%
Producer and transporter of energy Dominion Resources (NYSE: D) has a portfolio of assets that includes 27,500 megawatts of generation. Serving customers in 12 states, this utility stock has seen an increase of +10% year-to-date. Its 4.3% dividend yield comes to an annual total of $1.83 for Dominion’s shareholders. Having outperformed earnings estimate each of the last four quarters, Dominion is another popular utility stock at the moment.
Duke Energy Corp (DUK)
Market Cap: $22.8 billion
Dividend Yield: 5.8%
Based in Charlotte, N.C., Duke Energy (NYSE: DUK) is divided into three business segments: U.S. Franchised Electric and Gas, Commercial Power and International Energy. In 2009, Duke made several important acquisitions, including North Allegheny Wind LLC, as well as the remaining noncontrolling interest in Aguaytia Integrated Energy Project. This utility stock has remained steady throughout 2010 and is currently up by a little under 1% on the year. However, Duke Energy does pay a high dividend yield of 5.8%, which is keeping shareholders happy.
Consolidated Edison Inc. (ED)
Market Cap: $13.3 billion
Dividend Yield: 5.1%
Consolidated Edison (NYSE: ED) has been in the business of delivering regulated electricity, gas and steam since 1823. Edison provides electric service to nearly 3.3 million people in New York City and Westchester County. This utility stock has seen a modest gain of +3.5% in 2010, and a +10.4% rise since the start of June. Edison has paid a dividend to shareholders for 125 consecutive years, and is currently paying a dividend of 5.1%.
CPFL Energia S.A. (CPL)
Market Cap: $10.8 billion
Dividend Yield: 6.6%
CPFL Energia S.A. (NYSE: CPL) is a holding company that generates, distributes and commercializes electricity in Brazil. At the end of 2009, CPFL had over 6.6 million customers, and had distributed almost 38,000 gigawatt hours during the year. With an annual dividend of $4.59, this utility is certainly rewarding its shareholders. Additionally, CPFL has gained +9.1% year-to-date and has outperformed earnings estimates the past two quarters.
DTE Energy Co. (DTE)
Market Cap: $8.3 billion
Dividend Yield: 4.4%
DTE Energy Co. (NYSE: DTE) comprises Detroit Energy Company and Michigan Consolidate Gas Company. Detroit Edison sells and distributes electricity to 2.1 million customers in south-eastern Michigan. This utility stock is up +11.7% since January and boasts a current stock price of $48.80. Its rising stock price coupled with an annual dividend of $2.12 makes DTE a popular stock to buy at the moment.
Wisconsin Energy Corp (WEC)
Market Cap: $6.5 billion
Dividend Yield: 2.9%
Diversified holding company Wisconsin Energy Corp (NYSE: WEC) operates through a utility energy segment and a non-utility energy segment. Headquartered in Milwaukee, this utility stock offers an annual dividend of $1.60, or 2.9%. In 2010, the stock has gained +11.5%, and it has also outperformed earnings estimates three of the last four quarters.
CenterPoint Energy Inc. (CNP)
Market Cap: $5.7 billion
Dividend Yield: 5.5%
Public utility holding company CenterPoint Energy Inc. (NYSE: CNP) distributes electricity to a 5,000 square mile area of Texas’s Gulf Coast. CenterPoint’s subsidiaries also own interstate natural-gas pipelines and gas gathering systems. This utility stock has remained stable throughout the year, and is up by a little under +1% since January. CenterPoint did outperform earnings estimates last quarter however, and it provides a dividend yield of 5.5%, making it an intriguing stock pick.
Northeast Utilities (NU)
Market Cap: $5.1 billion
Dividend Yield: 3.7%
Northeast Utilities (NYSE: NU) is another public utility holding company. Based in Springfield, Mass., Northeast Utilities delivers energy to much of New England. NU offers its shareholders a dividend of $1.03 annually, or 3.7%. This utility stock has bounced around a bit in 2010, but is currently up +11.1% year-to-date.
ONEOK Inc (OKE)
Market Cap: $5.1
Dividend Yield: 4.0%
Natural gas distributer ONEOK Inc. (NYSE:OKE) provides service to wholesale and retail customers in Texas, Oklahoma and Kansas. Some of its major markets include Oklahoma City, Kansas City and Austin, Tex. Having gained +7.1%, this utility stock has outperformed earnings estimates for four consecutive quarters. High earnings and the 4% dividend yield offered by ONEOK make it a good stock to buy this quarter.
NiSource Inc. (NI)
Market Cap: $4.7 billion
Dividend Yield: 5.6%
NiSource Inc. (NYSE: NI) provides electricity, natural gas and other products to 3.8 million customers in the Gulf Coast, the Midwest and New England. NiSource has seen a gain of +10% in stock price since the start of 2010, and has outperformed estimates three of the last four quarters. This utility stock’s 5.6% dividend yield is one of the highest on this list.
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