2/07/2012

The Best Yielding Utilities With Fastest Earnings Growth

Utility Stocks With Best Growth Forecasts And Highest Yield Researched by Dividend Yield - Stock, Capital, Investment. Growth is an important item for wealth. If you own a business that doubles sales and income in ten years, your investment should have a return of 7.2 percent. If you double it in five years, you will have a return of 14.9 percent. Let’s take a look at the best growth stocks with attractive dividend yields within the utility sector. Utilities are wonderful investment objects because they generate stable revenues. 77 percent of all listed utility stocks have a beta ratio (volatility measure) of less than one.

I screened the sector by stocks with the highest earnings per share growth for the upcoming five years (at least 10 percent yearly). In addition, the company should pay today more than 2 percent in cash dividends. 10 stocks fulfilled my criteria of which 2 are high yields. Seven stocks have a buy or better recommendation.

Here are my favorite stocks:
(Subscribe my Blog via RSS Feed or E-Mail. Alternative, you can follow me on Facebook or Twitter)


TransAlta (NYSE:TAC) has a market capitalization of $4.61 billion. The company employs 2,389 people, generates revenues of $2,832.03 million and has a net income of $220.01 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $871.01 million. Because of these figures, the EBITDA margin is 30.76 percent (operating margin 14.47 percent and the net profit margin finally 7.77 percent).


Financial Analysis:
The total debt representing 42.82 percent of the company’s assets and the total debt in relation to the equity amounts to 133.30 percent. Due to the financial situation, a return on equity of 6.61 percent was realized. Twelve trailing months earnings per share reached a value of $1.41. Last fiscal year, the company paid $1.17 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 14.63, Price/Sales 1.63 and Price/Book ratio 1.57. Dividend Yield: 5.61 percent. The beta ratio is 0.94.


Long-Term Stock History Chart Of TransAlta Corp. (USA) (Click to enlarge)


Long-Term Dividends History of TransAlta Corp. (USA) (TAC) (Click to enlarge)


Long-Term Dividend Yield History of TransAlta Corp. (USA) (NYSE: TAC) (Click to enlarge)


American Water Works (NYSE:AWK) has a market capitalization of $6.02 billion. The company employs 7,600 people, generates revenues of $2,710.68 million and has a net income of $267.83 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,102.74 million. Because of these figures, the EBITDA margin is 40.68 percent (operating margin 27.60 percent and the net profit margin finally 9.88 percent).


Financial Analysis:
The total debt representing 40.54 percent of the company’s assets and the total debt in relation to the equity amounts to 138.13 percent. Due to the financial situation, a return on equity of 6.59 percent was realized. Twelve trailing months earnings per share reached a value of $1.61. Last fiscal year, the company paid $0.86 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 21.30, Price/Sales 2.19 and Price/Book ratio 1.44. Dividend Yield: 2.72 percent. The beta ratio is 0.33.


Long-Term Stock History Chart Of American Water Works C... (Click to enlarge)


Long-Term Dividends History of American Water Works C... (AWK) (Click to enlarge)


Long-Term Dividend Yield History of American Water Works C... (NYSE: AWK) (Click to enlarge)


NV Energy (NYSE:NVE) has a market capitalization of $3.86 billion. The company employs 2,916 people, generates revenues of $3,280.22 million and has a net income of $226.98 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $977.49 million. Because of these figures, the EBITDA margin is 29.80 percent (operating margin 19.65 percent and the net profit margin finally 6.92 percent).


Financial Analysis:
The total debt representing 45.25 percent of the company’s assets and the total debt in relation to the equity amounts to 157.57 percent. Due to the financial situation, a return on equity of 6.90 percent was realized. Twelve trailing months earnings per share reached a value of $0.85. Last fiscal year, the company paid $0.45 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 19.17, Price/Sales 1.16 and Price/Book ratio 1.14. Dividend Yield: 3.21 percent. The beta ratio is 0.66.


Long-Term Stock History Chart Of NV Energy, Inc. (Click to enlarge)


Long-Term Dividends History of NV Energy, Inc. (NVE) (Click to enlarge)


Long-Term Dividend Yield History of NV Energy, Inc. (NYSE: NVE) (Click to enlarge)

Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 19.09 and forward P/E ratio is 19.21. The dividend yield has a value of 2.97 percent. Price to book ratio is 3.03 and price to sales ratio 1.27. The operating margin amounts to 16.49 percent.

Here is the full table with some fundamentals (TTM):

The Best Yielding Utilities With Biggest EPS Forecasts (Click to enlarge)

Related stock ticker symbols:
PNG, TAC, EDE, ATLS, CPK, NVE, TRGP, SJW, PNM, AWK

Selected Articles:


* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

No comments:

Post a Comment

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.

If you like to receive the Dividend Weekly for free (weekly published E-Book with around 1,000 best dividend paying stocks), please enter your email and verify your adress. Easily unsubscribe at any time.