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9 High Beta Utilities | Good Yields At High Potential

Utility dividend stocks with highest beta ratios published at long-term-investments.blogspot.com. Utilities are necessary within the economy but they have huge problems to increase prices for utility products. Utility stocks normally have a lower volatility because of its stable revenue streams and income focused stakeholder structure. They are less risky than a high growth momentum stock with a highly priced business model that works only in the best dreams.

In today’s screen about the utilities with the highest beta ratio are only 9 stocks with a higher correlation to the broad market. This shows the real investment profile of utilities. Low growth, low risk and high debt as you might know it from real estate trusts.

Below the results are seven stocks with a buy or better rating. Only two big companies with a market capitalization over $10 billion are part of the results. Three are mid-capitalized.

Here are the highest yielding high beta dividend utilities:
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Otter Tail (NASDAQ:OTTR) has a market capitalization of $1.13 billion. The company employs 2,286 people, generates revenue of $859.24 million and has a net income of $38.97 million. Otter Tail’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $142.22 million. The EBITDA margin is 16.55 percent (the operating margin is 8.02 percent and the net profit margin 4.54 percent).

Financial Analysis: The total debt represents 26.33 percent of Otter Tail’s assets and the total debt in relation to the equity amounts to 78.49 percent. Due to the financial situation, a return on equity of 6.99 percent was realized by Otter Tail. Twelve trailing months earnings per share reached a value of $1.18. Last fiscal year, Otter Tail paid $1.19 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.34, the P/S ratio is 1.32 and the P/B ratio is finally 2.16. The dividend yield amounts to 3.81 percent and the beta ratio has a value of 1.19.


Long-Term Stock Price Chart Of Otter Tail (OTTR)
Long-Term Dividend Payment History of Otter Tail (OTTR)
Long-Term Dividend Yield History of Otter Tail (OTTR)

Transportadora de Gas Del Sur S.A. (NYSE:TGS) has a market capitalization of $308.26 million. The company employs 829 people, generates revenue of $466.44 million and has a net income of $43.33 million. Transportadora de Gas Del Sur’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $170.33 million. The EBITDA margin is 36.52 percent (the operating margin is 27.41 percent and the net profit margin 9.29 percent).

Financial Analysis: The total debt represents 33.71 percent of Transportadora de Gas Del Sur’s assets and the total debt in relation to the equity amounts to 91.84 percent. Due to the financial situation, a return on equity of 11.97 percent was realized by Transportadora de Gas Del Sur. Twelve trailing months earnings per share reached a value of $0.31. Last fiscal year, Transportadora de Gas Del Sur paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 6.24, the P/S ratio is 0.47 and the P/B ratio is finally 0.83. The dividend yield amounts to 17.13 percent and the beta ratio has a value of 1.10.


Long-Term Stock Price Chart Of Transportadora de Gas Del Sur (TGS)
Long-Term Dividend Payment History of Transportadora de Gas Del Sur (TGS)
Long-Term Dividend Yield History of Transportadora de Gas Del Sur (TGS)

Atlas Energy (NYSE:ATLS) has a market capitalization of $2.72 billion. The company employs 832 people, generates revenue of $1.521 billion and has a net income of $-16.88 million. Atlas Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $212.91 million. The EBITDA margin is 13.99 percent (the operating margin is 2.42 percent and the net profit margin -1.11 percent).

Financial Analysis: The total debt represents 33.51 percent of Atlas Energy’s assets and the total debt in relation to the equity amounts to 330.64 percent. Due to the financial situation, a return on equity of -9.98 percent was realized by Atlas Energy. Twelve trailing months earnings per share reached a value of $-0.91. Last fiscal year, Atlas Energy paid $1.03 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 1.79 and the P/B ratio is finally 5.84. The dividend yield amounts to 3.32 percent and the beta ratio has a value of 2.91.


Long-Term Stock Price Chart Of Atlas Energy (ATLS)
Long-Term Dividend Payment History of Atlas Energy (ATLS)
Long-Term Dividend Yield History of Atlas Energy (ATLS)


Take a closer look at the full list of high beta dividend paying utilities. The average P/E ratio amounts to 20.49 and forward P/E ratio is 15.92. The dividend yield has a value of 2.56 percent. Price to book ratio is 2.66 and price to sales ratio 1.53. The operating margin amounts to 14.48 percent and the beta ratio is 1.43. Stocks from the list have an average debt to equity ratio of 1.90.

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

9 High Beta Utilities (Click to enlarge)

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Related Stock Ticker Symbols:
OTTR, TGS, ATLS, OKE, SBS, CWCO, MDU, AES, ORA

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. Hi Tom,thanks for sharing this post.
    I just want to add this, that dividends has been paid on per share basis.And that is basically whatever they are not plowing into the company,they sure to divide it by the number of shares that they had been given to the amount who holds those shares.

    ReplyDelete

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