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Portfolio of Dividend-Paying Electric Utilities Stocks

Well-managed electric utilities are excellent candidates for a dividend reinvestment portfolio. Typically, electric utilities generate lots of excess cash and pay it out as dividends to shareholders.


Look for a company that has consistent earnings growth, a long history of rising dividends and a reasonable payout ratio, which is the ratio of dividends to earnings. A low payout ratio (less than 70 percent) indicates the possibility of future dividend increases. A very high payout ratio (greater than 90 percent) may not be sustainable and may signal a dividend cut in the future.

If the dividend yield (annual dividend divided by stock price) is very high (greater than six or seven percent) the company may have problems - the high yield may be due to a low stock price. Be very wary of stocks with high dividend yields and high payout ratios.

The following table includes 9 electric utilities that have multiyear histories of increasing their dividends. These stocks are worth considering for a dividend reinvestment portfolio.

Dividend-Paying Electric Utilities Stocks
Stock
Quote
Annual Dividend & Yield
Annual Dividend 100 Shares
Customize
Price to Annual Dividend Ratio
1-Yr Price Chart
American Electric Power
2.48 (3.37%)
$248.00
29.67
Consolidated Edison
2.76 (3.25%)
$276.00
30.78
Dominion Resources
3.08 (3.80%)
$308.00
26.32
Duke Energy
3.56 (4.23%)
$356.00
23.63
Entergy
3.56 (4.37%)
$356.00
22.86
Hawaiian Electric Industries
1.24 (3.43%)
$124.00
29.15
PPL Corporation
1.58 (5.11%)
$158.00
19.59
Southern Energy
2.32 (4.82%)
$232.00
20.73
Wisconsin Energy
2.08 (3.13%)
$208.00
31.94
Sum Dividends
$2,266.00
Price and dividend data from Quandl. Dividend, yield and price to dividend ratio as of Jan-01-2018.


To inspect the performance of the Dividend-Paying Electric Utilities Stocks portfolio, see the returns table and chart below. Portfolio values are computed using quarterly closes for from Quandl.

All 9 are included in the portfolio computations. The current value of the portfolio assumes that $1,111.11 was invested (total of $10,000) in each at its closing weekly price for the current date in 2008.


Dividend-Paying Electric Utilities Stocks - Return Results
Portfolio:
Dividend-Paying Electric Utilities Stocks
Start date:
Jan-18-2008
Start value:
$10,000
End date:
Jan-18-2018
End value:
$24,098
Number prices
121
Minimum value occurred on Feb-28-2009
$7,580
Maximum value occurred on Nov-30-2017
$27,150
Total gain or loss (Start date to End date)
140.98%
Annualized gain or loss (Start date to End date)
9.19%
Total dollar value on End date of a $10,000 purchase made on Start date
$24,098
Average percent return for all possible buy/sell combinations
54.08%
Number returns
7,260
Number profitable returns (Winners)
6,739
Percent profitable returns
92.82%
Number unprofitable returns (Losers)
521
Percent unprofitable returns
7.18%
Winners to losers ratio
12.93
Stock Return Calculator


Click chart to enlarge it.



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