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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 (3.32%)
$248.00
30.15
Consolidated Edison
2.76 (3.17%)
$276.00
31.59
Dominion Resources
3.02 (3.74%)
$302.00
26.76
Duke Energy
3.56 (4.00%)
$356.00
24.97
Entergy
3.56 (4.18%)
$356.00
23.91
Hawaiian Electric Industries
1.24 (3.42%)
$124.00
29.22
PPL Corporation
1.58 (4.35%)
$158.00
22.97
Southern Energy
2.32 (4.52%)
$232.00
22.14
Wisconsin Energy
2.08 (3.06%)
$208.00
32.65
Sum Dividends
$2,260.00
Price and dividend data from Quandl. Dividend, yield and price to dividend ratio as of Nov-11-2017.


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 2007.


Dividend-Paying Electric Utilities Stocks - Return Results
Portfolio:
Dividend-Paying Electric Utilities Stocks
Start date:
Nov-16-2007
Start value:
$10,000
End date:
Nov-16-2017
End value:
$24,819
Number prices
41
Minimum value occurred on Mar-31-2009
$7,183
Maximum value occurred on Dec-31-2017
$24,819
Total gain or loss (Start date to End date)
148.19%
Annualized gain or loss (Start date to End date)
216.75%
Total dollar value on End date of a $10,000 purchase made on Start date
$24,819
Average percent return for all possible buy/sell combinations
51.01%
Number returns
820
Number profitable returns (Winners)
730
Percent profitable returns
89.02%
Number unprofitable returns (Losers)
90
Percent unprofitable returns
10.98%
Winners to losers ratio
8.11
Stock Return Calculator


Click chart to enlarge it.



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