3/08/2012

The Most Profitable Utility Dividend Stocks

Utility Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield - Stock, Capital, Investment. Utilities are stable dividend payer but they only generate slow growth for investors and they are very capital intensive. Nevertheless, people can make money with utility stocks.

I screened the utility sector by the most profitable stocks (stocks with an operating margin and return on investment over 5 percent) with a dividend yield over 4 percent. Exactly nine companies fulfilled these criteria. Most of the results come from the gas utility industry. Five stocks have a buy or strong buy rating.

Here are my favorite stocks:
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National Grid (NYSE:NGG) has a market capitalization of $36.35 billion. The company employs 27,089 people, generates revenues of $22,544.44 million and has a net income of $3,399.82 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,863.76 million. Because of these figures, the EBITDA margin is 34.88 percent (operating margin 26.15 percent and the net profit margin finally 15.08 percent).


Financial Analysis:
The total debt representing 50.00 percent of the company’s assets and the total debt in relation to the equity amounts to 256.05 percent. Due to the financial situation, a return on equity of 32.57 percent was realized. Twelve trailing months earnings per share reached a value of $4.82. Last fiscal year, the company paid $2.86 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 10.57, P/S ratio 1.63 and P/B ratio 2.52. Dividend Yield: 5.86 percent. The beta ratio is 0.62.


Long-Term Stock History Chart Of National Grid plc (ADR) (Click to enlarge)


Long-Term Dividends History of National Grid plc (ADR) (NGG) (Click to enlarge)


Long-Term Dividend Yield History of National Grid plc (ADR) (NYSE: NGG) (Click to enlarge)


AmeriGas Partners (NYSE:APU) has a market capitalization of $3.90 billion. The company employs 5,460 people, generates revenues of $2,537.96 million and has a net income of $140.92 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $284.43 million. Because of these figures, the EBITDA margin is 11.21 percent (operating margin 8.07 percent and the net profit margin finally 5.55 percent).


Financial Analysis:
The total debt representing 57.30 percent of the company’s assets and the total debt in relation to the equity amounts to 303.85 percent. Due to the financial situation, a return on equity of 36.92 percent was realized. Twelve trailing months earnings per share reached a value of $1.79. Last fiscal year, the company paid $2.89 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 25.39, P/S ratio 1.52 and P/B ratio 7.65. Dividend Yield: 6.79 percent. The beta ratio is 0.41.


Long-Term Stock History Chart Of AmeriGas Partners, L.P. (Click to enlarge)


Long-Term Dividends History of AmeriGas Partners, L.P. (APU) (Click to enlarge)


Long-Term Dividend Yield History of AmeriGas Partners, L.P. (NYSE: APU) (Click to enlarge)


Exelon Corporation (NYSE:EXC) has a market capitalization of $25.54 billion. The company employs 19,267 people, generates revenues of $18,924.00 million and has a net income of $2,495.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,815.00 million. Because of these figures, the EBITDA margin is 30.73 percent (operating margin 23.67 percent and the net profit margin finally 13.18 percent).


Financial Analysis:
The total debt representing 24.49 percent of the company’s assets and the total debt in relation to the equity amounts to 93.79 percent. Due to the financial situation, a return on equity of 17.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, the company paid $2.10 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 10.26, P/S ratio 1.36 and P/B ratio 1.79. Dividend Yield: 5.42 percent. The beta ratio is 0.56.


Long-Term Stock History Chart Of Exelon Corporation (Click to enlarge)


Long-Term Dividends History of Exelon Corporation (EXC) (Click to enlarge)


Long-Term Dividend Yield History of Exelon Corporation (NYSE: EXC) (Click to enlarge)


Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 13.50 and forward P/E ratio is 17.21. The dividend yield has a value of 5.89 percent. Price to book ratio is 3.06 and price to sales ratio 1.57. The operating margin amounts to 22.17 percent. Finally, the return on equity has a fantastic margin of 20.04 percent and the return on investment follows with a value of 7.08 percent.

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

The Best Utility Dividend Stocks (Click to enlarge)

Related stock ticker symbols:
AT, SPH, APU, NGG, EXC, BIP, EGAS, PEG, CPL

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.

1 comment:

  1. An excellent list of electic utility stocks. Many of the electric utility stocks are unpopular because of their nuclear power plants and coal burning plants. But in the end Electricity needs to be produced. China is building 2 to 3 coal burning power plants a week for the next ten years can you believe that' while the united states has not built a single nuclear power plant since the nineteen seventies. I think theirs only 1 or maybe 2 coal burning power plants being built in the united states per year if that. So the real acute shortage coming could very well be electricity.

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