The Best Utility Dividend Stocks

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Utility Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield – Stock, Capital, Investment. Utilities are stable dividend payer but they only generate slow growth for investors and they are very capital intensive. Nevertheless, people can make money with utility stocks.

I screened the utility sector by the most profitable stocks (stocks with an operating margin and return on investment over 5 percent) with a dividend yield over 4 percent. Exactly nine companies fulfilled these criteria. Most of the results come from the gas utility industry. Five stocks have a buy or strong buy rating.

Here are my favorite stocks:

1. National Grid (NGG) has a market capitalization of $36.35 billion. The company employs 27,089 people, generates revenues of $22,544.44 million and has a net income of $3,399.82 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,863.76 million. Because of these figures, the EBITDA margin is 34.88 percent (operating margin 26.15 percent and the net profit margin finally 15.08 percent).

The total debt representing 50.00 percent of the company’s assets and the total debt in relation to the equity amounts to 256.05 percent. Due to the financial situation, a return on equity of 32.57 percent was realized. Twelve trailing months earnings per share reached a value of $4.82. Last fiscal year, the company paid $2.86 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.57, P/S ratio 1.63 and P/B ratio 2.52. Dividend Yield: 5.86 percent. The beta ratio is 0.62.

2. AmeriGas Partners (APU) has a market capitalization of $3.90 billion. The company employs 5,460 people, generates revenues of $2,537.96 million and has a net income of $140.92 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $284.43 million. Because of these figures, the EBITDA margin is 11.21 percent (operating margin 8.07 percent and the net profit margin finally 5.55 percent).

The total debt representing 57.30 percent of the company’s assets and the total debt in relation to the equity amounts to 303.85 percent. Due to the financial situation, a return on equity of 36.92 percent was realized. Twelve trailing months earnings per share reached a value of $1.79. Last fiscal year, the company paid $2.89 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 25.39, P/S ratio 1.52 and P/B ratio 7.65. Dividend Yield: 6.79 percent. The beta ratio is 0.41.

3. Exelon Corporation (EXC) has a market capitalization of $25.54 billion. The company employs 19,267 people, generates revenues of $18,924.00 million and has a net income of $2,495.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,815.00 million. Because of these figures, the EBITDA margin is 30.73 percent (operating margin 23.67 percent and the net profit margin finally 13.18 percent).

The total debt representing 24.49 percent of the company’s assets and the total debt in relation to the equity amounts to 93.79 percent. Due to the financial situation, a return on equity of 17.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, the company paid $2.10 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 10.26, P/S ratio 1.36 and P/B ratio 1.79. Dividend Yield: 5.42 percent. The beta ratio is 0.56.

Take a closer look at the full table of the most profitable utilities with best yields. The average price to earnings ratio (P/E ratio) amounts to 13.50 and forward P/E ratio is 17.21. The dividend yield has a value of 5.89 percent. Price to book ratio is 3.06 and price to sales ratio 1.57. The operating margin amounts to 22.17 percent. Finally, the return on equity has a fantastic margin of 20.04 percent and the return on investment follows with a value of 7.08 percent.

Selected Articles:

· The Best Yielding Utilities With Biggest EPS Forecasts

· 15 Utility Dividend Stocks With Buy Or Better Rating

· 12 Fast Growing Utilities With A Dividend Yield Above 3 Percent

· 8 Low Debt Utilities With High Dividend Yield

· The Best Yielding Gas Utilities

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