4/08/2012

12 Utility Dividend Stocks With Accelerated Earnings Growth

Utility Dividend Stocks With Gaining Earnings Momentum Researched By Dividend Yield - Stock, Capital, Investment. Growth stocks are wonderful especially if they are at the beginning of their growth path. Growth normally creates shareholder value and if the company doesn’t need much money to finance the growth, you can benefit already within the early stage.

In order to find some growth opportunities from the utility sector with current dividend payments, I screened the sector by stocks with a positive earnings growth (past five years). In order to catch up only those stocks with a gaining earnings growth, I observed only stocks with a quarter over quarter sales and earnings per share growth of more than five percent. Exactly twelve companies fulfilled these criteria. Eight of them are recommended to buy.

Here are my favorite stocks:
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PPL Corporation (NYSE:PPL) has a market capitalization of $16.01 billion. The company employs 17,722 people, generates revenues of $12,737.00 million and has a net income of $1,510.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,309.00 million. Because of these figures, the EBITDA margin is 33.83 percent (operating margin 24.30 percent and the net profit margin finally 11.86 percent).


Financial Analysis:
The total debt representing 43.54 percent of the company’s assets and the total debt in relation to the equity amounts to 171.51 percent. Due to the financial situation, a return on equity of 15.62 percent was realized. Twelve trailing months earnings per share reached a value of $2.71. Last fiscal year, the company paid $1.40 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 10.18, P/S ratio 1.26 and P/B ratio 1.48. Dividend Yield: 5.21 percent. The beta ratio is 0.40.


Long-Term Stock History Chart Of PPL Corporation (Click to enlarge)


Long-Term Dividends History of PPL Corporation (PPL) (Click to enlarge)


Long-Term Dividend Yield History of PPL Corporation (NYSE: PPL) (Click to enlarge)


NextEra Energy (NYSE:NEE) has a market capitalization of $26.17 billion. The company employs 15,000 people, generates revenues of $15,341.00 million and has a net income of $1,923.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,909.00 million. Because of these figures, the EBITDA margin is 32.00 percent (operating margin 21.78 percent and the net profit margin finally 12.54 percent).


Financial Analysis:
The total debt representing 40.16 percent of the company’s assets and the total debt in relation to the equity amounts to 153.70 percent. Due to the financial situation, a return on equity of 13.08 percent was realized. Twelve trailing months earnings per share reached a value of $4.59. Last fiscal year, the company paid $2.20 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 13.70, P/S ratio 1.71 and P/B ratio 1.75. Dividend Yield: 3.82 percent. The beta ratio is 0.55.


Long-Term Stock History Chart Of NextEra Energy, Inc. (Click to enlarge)


Long-Term Dividends History of NextEra Energy, Inc. (NEE) (Click to enlarge)


Long-Term Dividend Yield History of NextEra Energy, Inc. (NYSE: NEE) (Click to enlarge)


EQT Corporation (NYSE:EQT) has a market capitalization of $7.34 billion. The company employs 1,835 people, generates revenues of $1,639.93 million and has a net income of $479.77 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,007.79 million. Because of these figures, the EBITDA margin is 61.45 percent (operating margin 40.76 percent and the net profit margin finally 29.26 percent).


Financial Analysis:
The total debt representing 31.31 percent of the company’s assets and the total debt in relation to the equity amounts to 76.43 percent. Due to the financial situation, a return on equity of 14.38 percent was realized. Twelve trailing months earnings per share reached a value of $3.19. Last fiscal year, the company paid $0.88 in form of dividends to shareholders.


Market Valuation:
Here are the price ratios of the company: The P/E ratio is 15.37, P/S ratio 4.48 and P/B ratio 2.04. Dividend Yield: 1.79 percent. The beta ratio is 0.80.


Long-Term Stock History Chart Of EQT Corporation (Click to enlarge)


Long-Term Dividends History of EQT Corporation (EQT) (Click to enlarge)


Long-Term Dividend Yield History of EQT Corporation (NYSE: EQT) (Click to enlarge)


Take a closer look at the full table of utilities with accelerated earnings growth. The average price to earnings ratio (P/E ratio) amounts to 16.38 and forward P/E ratio is 17.65. The dividend yield has a value of 3.57 percent. Price to book ratio is 2.02 and price to sales ratio 2.05. The operating margin amounts to 23.84 percent. Sales increased 22.12 percent compared to the figures from the same quarter last year (7.62 percent 5-year average) and the earnings per share grew 56.07 percent quarter over quarter (6.84 percent 5-year average).

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

12 Utility Dividend Stocks With Accelerated Earnings (Click to enlarge)

Related stock ticker symbols:
CPL, PPL, HE, WR, POR, TRP, NEE, OKE, SWX, ITC, EQT, ELP

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.

1 comment:

  1. I love electric utilities simply because unlike years ago when electric power companies wanted to raise the price of electricity they had to file a request with a state regulator of utilities board of sorts a time consuming process and than most likely did not receive the price increases that they wore requesting. Now with many states having deregulated their utilities many electric power companies can charge whatever the market will bear. The nuclear power plants in the united states are over 30 years old many of them are close to 40 years old their has not been one single nuclear power plant constructed and completed in over thirty years. The same is true with coal burning plants. With such limited additional electric generating capacity the price of electric power will skyrocket at some point in the not too distant future.

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