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 | Symbol | Dividend (Yield) |
| American Electric Power | AEP | $3.12 (3.10%) |
| Consolidated Edison | ED | $3.16 (3.16%) |
| Dominion Energy | D | $2.67 (3.24%) |
| Duke Energy | DUK | $4.02 (3.70%) |
| Entergy | ETR | $4.04 (3.42%) |
| Hawaiian Electric Industries | HE | $1.40 (3.23%) |
| NextEra Energy | NEE | $1.70 (1.95%) |
| PPL Corporation | PPL | $0.90 (3.55%) |
| Southern Energy | SO | $2.72 (3.48%) |
| Wisconsin Energy | WEC | $2.91 (2.79%) |
| Xcel Energy | XEL | $1.95 (2.96%) |
| Dividend data from Alpha Vantage as of Sep-02-2022. | ||
| 11 Dividend-Paying Electric Utilities Stocks | ||
|---|---|---|
Name | Symbol | Last Close |
| American Electric Power | AEP | $95.63 |
| Consolidated Edison | ED | $93.17 |
| Dominion Energy | D | $75.84 |
| Duke Energy | DUK | $100.84 |
| Entergy | ETR | $108.81 |
| Hawaiian Electric Industries | HE | $36.87 |
| NextEra Energy | NEE | $81.15 |
| PPL Corporation | PPL | $27.50 |
| Southern Energy | SO | $73.15 |
| Wisconsin Energy | WEC | $97.21 |
| Xcel Energy | XEL | $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 Power | AEP | 61.08% |
| Consolidated Edison | ED | 38.94% |
| Dominion Energy | D | 20.90% |
| Duke Energy | DUK | 47.86% |
| Entergy | ETR | 72.31% |
| Hawaiian Electric Industries | HE | 30.55% |
| NextEra Energy | NEE | 147.94% |
| PPL Corporation | PPL | -6.03% |
| Southern Energy | SO | 85.59% |
| Wisconsin Energy | WEC | 79.62% |
| Xcel Energy | XEL | 70.43% |
Portfolio Value Chart for Last 100 Daily Closes
See Portfolio of Dividend Income Stocks: Electric Utilities.
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Portfolio of Diversified Utilities Stocks
Portfolio of Dividend-Paying Natural Gas Utilities Stocks