There is a huge need for capital when utilities think about expansion but they also deliver solid sales and returns. It’s like an infrastructure investment within the economy.
Today I like to apply my current article serial criteria about stocks with high potential to boost dividend payments to the utility sector. I needed to weaken the efforts a little bit. These are the new criteria:
Dividend Payout Ratio below 50 percent
Debt-To-Equity Ratio under 1
IdaCorp is the top yielding pick on the list. I recently put them into the Dividend Yield Passive Income Portfolio which generates currently around $2,500 in passive income.
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IDACORP (NYSE:IDA) has a market capitalization of $2.42 billion. The company employs 2,067 people, generates revenue of $1.080 billion and has a net income of $168.93 million. IDACORP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $366.54 million. The EBITDA margin is 33.92 percent (the operating margin is 22.45 percent and the net profit margin 15.63 percent).
Financial Analysis: The total debt represents 30.22 percent of IDACORP’s assets and the total debt in relation to the equity amounts to 91.39 percent. Due to the financial situation, a return on equity of 9.88 percent was realized by IDACORP. Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, IDACORP paid $1.37 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.85, the P/S ratio is 2.24 and the P/B ratio is finally 1.37. The dividend yield amounts to 3.57 percent and the beta ratio has a value of 0.45.
Long-Term Stock Price Chart Of IDACORP (IDA) |
Long-Term Dividend Payment History of IDACORP (IDA) |
Long-Term Dividend Yield History of IDACORP (IDA) |
Transportadora de Gas Del Sur (NYSE:TGS) has a market capitalization of $343.22 million. The company employs 829 people, generates revenue of $443.04 million and has a net income of $41.16 million. Transportadora de Gas Del Sur’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $161.79 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 $0.29. 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 7.32, the P/S ratio is 0.59 and the P/B ratio is finally 0.98. The dividend yield amounts to 15.39 percent and the beta ratio has a value of 0.63.
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) |
Chesapeake Utilities Corporation (NYSE:CPK) has a market capitalization of $488.48 million. The company employs 738 people, generates revenue of $392.50 million and has a net income of $28.86 million. Chesapeake Utilities Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $79.14 million. The EBITDA margin is 20.16 percent (the operating margin is 14.43 percent and the net profit margin 7.35 percent).
Financial Analysis: The total debt represents 23.35 percent of Chesapeake Utilities Corporation’s assets and the total debt in relation to the equity amounts to 66.76 percent. Due to the financial situation, a return on equity of 11.61 percent was realized by Chesapeake Utilities Corporation. Twelve trailing months earnings per share reached a value of $3.34. Last fiscal year, Chesapeake Utilities Corporation paid $1.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.17, the P/S ratio is 1.24 and the P/B ratio is finally 1.90. The dividend yield amounts to 3.03 percent and the beta ratio has a value of 0.47.
Long-Term Stock Price Chart Of Chesapeake Utilities Corporation (CPK) |
Long-Term Dividend Payment History of Chesapeake Utilities Corporation (CPK) |
Long-Term Dividend Yield History of Chesapeake Utilities Corporation (CPK) |
Take a closer look at the full list of utilities with potential to boost dividends. The average P/E ratio amounts to 16.98
and forward P/E ratio is 16.41. The dividend yield has a value of 2.41 percent.
Price to book ratio is 1.95 and price to sales ratio 2.38. The operating margin
amounts to 22.63 percent and the beta ratio is 1.95. Stocks from the list have
an average debt to equity ratio of 0.70.
Here is the full table with
some fundamentals (TTM):
Utilities With Potential To Hike Dividends (Click to enlarge) |
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Related Stock Ticker Symbols:
IDA, TGS, CPK,
AWR, SWX, SBS, ENI, CWCO, CIG, EQT
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.