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.

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.

The Best Yielding Utilities With Fastest Earnings Growth

Utility Stocks With Best Growth Forecasts And Highest Yield Researched by Dividend Yield - Stock, Capital, Investment. Growth is an important item for wealth. If you own a business that doubles sales and income in ten years, your investment should have a return of 7.2 percent. If you double it in five years, you will have a return of 14.9 percent. Let’s take a look at the best growth stocks with attractive dividend yields within the utility sector. Utilities are wonderful investment objects because they generate stable revenues. 77 percent of all listed utility stocks have a beta ratio (volatility measure) of less than one.