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12 Best Yielding Utilities With Double-Digit EPS Growth Potential

Utilities with best dividend yields and high earnings per share growth forecasts originally published at "long-term-investments.blogspot.com". Utilities are well-known for its stability and high dividend payments but they offer also high debt and low growth rates. Sure, utilities can give you some kind of safeness but the only thing that let’s your wealth grow is growth.

Growth is very expensive within the utility sector and I am not sure how it works in the United States but in many countries on the world, utilities are regulated by the government, so they cannot increase prices how they like.

Utilities are essential supplier for basic consumptions products like electricity, water, garbage and so on. Prices should be low in order to realize an optimized prosperity of the nation. If prices are too high, the government will be changed at the next election.

For investors is this fact a very hard environment to make money. You can do it but it is much easier in other sectors. If you invest money in foreign utilities, you bet mainly on an inflation growth and a currency gain.

However, a high dividend is not the only solution of wealth. Growth is more important. I prefer low yielding stocks with no legislative rules and high growth. This will help me to grow faster than the inflation.

Today, I like to show you some of the best yielding utilities with the highest expected earnings per share growth for the next half-decade. From 123 listed utilities pay 107 a dividend but only for 12 companies, earnings per share is expected to grow yearly by more than 10 percent.


Gas utilities are the dominant players on my screening result - There are five stocks from the industry. It could be possible that analysts expecting lower gas prices for the mid-term due to the shale gas boom.


Here are my favorite stocks:
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ONEOK (NYSE:OKE) has a market capitalization of $9.67 billion. The company employs 4,795 people, generates revenue of $14.805 billion and has a net income of $757.51 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.471 billion. The EBITDA margin is 9.94 percent (the operating margin is 7.83 percent and the net profit margin 5.12 percent).

Financial Analysis: The total debt represents 41.88 percent of the company’s assets and the total debt in relation to the equity amounts to 256.23 percent. Due to the financial situation, a return on equity of 15.29 percent was realized. Twelve trailing months earnings per share reached a value of $1.65. Last fiscal year, the company paid $1.08 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.69, the P/S ratio is 0.65 and the P/B ratio is finally 4.36. The dividend yield amounts to 3.05 percent and the beta ratio has a value of 1.05.



”Long-Term
Long-Term Stock History Chart Of ONEOK (OKE)
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Long-Term Dividends History of ONEOK (OKE)
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Long-Term Dividend Yield History of ONEOK (OKE)

NRG Energy (NYSE:NRG) has a market capitalization of $5.42 billion. The company employs 5,193 people, generates revenue of $9.079 billion and has a net income of $197.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $861.00 million. The EBITDA margin is 9.48 percent (the operating margin is -0.39 percent and the net profit margin 2.17 percent).


Financial Analysis: The total debt represents 36.80 percent of the company’s assets and the total debt in relation to the equity amounts to 127.11 percent. Due to the financial situation, a return on equity of 2.42 percent was realized. Twelve trailing months earnings per share reached a value of $-0.33. Last fiscal year, the company 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 , the P/S ratio is 0.60 and the P/B ratio is finally 0.72. The dividend yield amounts to 1.52 percent and the beta ratio has a value of 0.72.



”Long-Term
Long-Term Stock History Chart Of NRG Energy (NRG)
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Long-Term Dividends History of NRG Energy (NRG)
”Long-Term
Long-Term Dividend Yield History of NRG Energy (NRG)

Huaneng Power (NYSE:HNP) has a market capitalization of $13.99 billion. The company employs 35,549 people, generates revenue of $21.340 billion and has a net income of $189.66 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.345 billion. The EBITDA margin is 15.68 percent (the operating margin is 6.58 percent and the net profit margin 0.89 percent).


Financial Analysis: The total debt represents 64.91 percent of the company’s assets and the total debt in relation to the equity amounts to 328.36 percent. Due to the financial situation, a return on equity of 2.26 percent was realized. Twelve trailing months earnings per share reached a value of $0.99. Last fiscal year, the company paid $0.32 in the form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.14, the P/S ratio is 0.74 and the P/B ratio is finally 1.71. The dividend yield amounts to 0.79 percent and the beta ratio has a value of 0.53.



”Long-Term
Long-Term Stock History Chart Of Huaneng Power (HNP)
”Long-Term
Long-Term Dividends History of Huaneng Power (HNP)
”Long-Term
Long-Term Dividend Yield History of Huaneng Power (HNP)


Take a closer look at the full list of the best yielding growth stocks from the utility sector. The average P/E ratio amounts to 38.87 and forward P/E ratio is 22.87. The dividend yield has a value of 2.99 percent. Price to book ratio is 3.75 and price to sales ratio 1.92. The operating margin amounts to 13.89 percent and the beta ratio is 0.91. Stocks from the list have an average debt to equity ratio of 2.95.

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

Fastest Growing Dividend Utilities (Click to enlarge)

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Related stock ticker symbols:
APU, TAC, EDE, ATLS, OKE, TRGP, SJW, ITC, NRG, ORA, HNP, EQT

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* 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.