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:
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.
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| Long-Term Stock History Chart Of National Grid plc (ADR) (Click to enlarge) |
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| Long-Term Dividends History of National Grid plc (ADR) (NGG) (Click to enlarge) |
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| 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.
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| Long-Term Stock History Chart Of AmeriGas Partners, L.P. (Click to enlarge) |
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| Long-Term Dividends History of AmeriGas Partners, L.P. (APU) (Click to enlarge) |
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| 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.
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| Long-Term Stock History Chart Of Exelon Corporation (Click to enlarge) |
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| Long-Term Dividends History of Exelon Corporation (EXC) (Click to enlarge) |
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| 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):
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| 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.
