Portfolio of 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 11 electric utilities that have multiyear histories of increasing their dividends. These stocks are worth considering for a dividend reinvestment portfolio.


11 Dividend-Paying Electric Utilities Stocks

Name
& Monthly Returns

Symbol
& Snapshot

Dividend (Yield)
& Dividend Chart

American Electric Power AEP$3.12 (3.10%)
Consolidated EdisonED$3.16 (3.16%)
Dominion EnergyD$2.67 (3.24%)
Duke EnergyDUK$4.02 (3.70%)
EntergyETR$4.04 (3.42%)
Hawaiian Electric IndustriesHE$1.40 (3.23%)
NextEra EnergyNEE$1.70 (1.95%)
PPL CorporationPPL$0.90 (3.55%)
Southern EnergySO$2.72 (3.48%)
Wisconsin EnergyWEC$2.91 (2.79%)
Xcel EnergyXEL$1.95 (2.96%)
Dividend data from Alpha Vantage as of Sep-02-2022.


11 Dividend-Paying Electric Utilities Stocks

Name
& Last 100 Days Returns

Symbol

Last Close
& 100-Day Trendline Chart

American Electric Power AEP$95.63
Consolidated EdisonED$93.17
Dominion EnergyD$75.84
Duke EnergyDUK$100.84
EntergyETR$108.81
Hawaiian Electric IndustriesHE$36.87
NextEra EnergyNEE$81.15
PPL CorporationPPL$27.50
Southern EnergySO$73.15
Wisconsin EnergyWEC$97.21
Xcel EnergyXEL$69.95


Portfolio Values

To inspect the performance of the Dividend-Paying Electric Utilities Stocks portfolio, see the chart below. Portfolio values are computed using monthly closes for stocks from Alpha Vantage.

All 11 stocks are included in the portfolio computations. The current value of the portfolio assumes that $909.09 was invested in each stock at its closing monthly price for the first date shown on the portfolio value chart below. All prices are adjusted for splits and dividends.

The current value of the $10,000 investment is $15,902. The percent return is 59.02%. The annualized return is 9.72%.


11 Dividend-Paying Electric Utilities Stocks Returns

Name

Symbol

Monthly Returns & Details

American Electric PowerAEP61.08%
Consolidated EdisonED38.94%
Dominion EnergyD20.90%
Duke EnergyDUK47.86%
EntergyETR72.31%
Hawaiian Electric IndustriesHE30.55%
NextEra EnergyNEE147.94%
PPL CorporationPPL-6.03%
Southern EnergySO85.59%
Wisconsin EnergyWEC79.62%
Xcel EnergyXEL70.43%


Portfolio Value Chart for Last 100 Daily Closes



See Portfolio of Dividend Income Stocks: Electric Utilities.

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