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Showing posts with label CWCO. Show all posts
Showing posts with label CWCO. Show all posts

11 Best Dividend Paying Water Utilities Dividend Stocks

Water utility companies provide drinking water and wastewater services for residential, commercial, and industrial sectors on municipal, state, and federal levels. Many times, these are natural monopolies and are stable, established corporations. These companies generally pay average to slightly above average dividend yields.

Providing clean water all over the world is a significant global challenge, both for water utility stocks and for conservationists. In a 2012 article, I mentioned that the United Nations and organizations such as Water.org were addressing this problem. Today I focus on water conservation on Main Street -- where water bills are higher due to new water meters and the general overuse of water.

But high water bills may make water utility stocks more appealing for investors.

The following table includes 11 water utilities. Many water utilities have multiyear histories of increasing their dividends making them candidates for a dividend reinvestment portfolio.

Here are the 11 Best Dividend Paying Water Utilities Dividend Stocks...

12 Stocks That Are No Dividend Champs Due To Flat Payments But Great Dividend Investments

Dividends are nice, to be sure … particularly to long-term investors who specifically need reliable income.

But not all dividend stocks are created equally. To remain a viable long-term holding to income seekers, these cash-producing stocks also need to offer reliable dividend growth over time to fight off the effects of inflation.

What good is a stagnant dividend, after all — as the payout stays the same, its purchasing power slowly erodes. And it’s surprising how many dividend paying companies don’t up their payouts to even keep pace with inflation.

It's not a shame when a company runs his dividend flat for a few years but the strengh dividend growth criteria don't add them up into the Dividend Champions league.

Here is a list of stocks that can be classified the the non-consistent dividend growers. You can also check out the Dividend Aristocrats list from 1989 to 2014. There is a great overview about how the index has changed his members.

These are some of the results:

10 Utilities With The Most Solid Debt And Payout Figures To Boost Future Dividends

Utility dividend paying stocks with low payout ratios and relatively small debt figures originally published at long-term-investments.blogspot.com. The utility sector is a little bit different compared to the other sectors on the capital market.

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

As you might see, only ten utilities fulfilled these criteria of which six are currently recommended to buy. It’s really so sector to find low leveraged stocks with small payout ratios. You should definitely look at the technology or healthcare sector to find more results.

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.

Here are my favorite stocks:
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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.

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.

Best Utility Dividend Stock Picks For 2013

The utility sectors offers generally high dividend yields with value. The negative point is that the sector is very capital intensive and the growth potential is limited. However, I wanted to know what stocks are the best dividend stock buy picks for the next year. I screened all 123 listed utility stocks by the best ones for next year. My criteria are:

- Forward P/E under 15
- Past Sales growth recent 10 years over 5 percent
- Positive Earnings per share growth for the next five years
- Operating Margin over 10 percent

Twelve companies fulfilled the above mentioned criteria. Eight of them have a buy or better rating. The mostly represented industry is the eclectic utility industry. I personally don’t own any utility stocks because I am a dividend growth investor. I always look for growing companies with strong brands and high abilities to expand aboard. Utilities don’t fulfill these criteria. So my main focus will be on the consumer sector.