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12 Best Dividend Paying Utilities To Consider

Best Dividend Paying Utilities Researched By “long-term-investments.blogspot.com. The utility sector is a great investment field with fantastic value and sustainable high dividends. The whole sector has a total market capitalization of USD 18.68 trillion and summarizes 117 companies. The average dividend yield amounts to 4.24 percent and the P/E ratio is 15.51.

In order to find the best dividend paying stocks within the sector, I screened all companies with a positive dividend yield, great earnings per share growth of more than five percent and an operating margin over 20 percent. In order get the best results in terms of low debt and high cash, the debt to equity ratio should be under one. Twelve utility companies remained of which nine yielding over three percent and eight are currently recommended to buy.

Here are my favorite stocks:
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PAA Natural Gas Storage (NYSE:PNG) has a market capitalization of $1.57 billion. The company employs 83 people, generates revenue of $342.96 million and has a net income of $59.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $98.75 million. The EBITDA margin is 28.79 percent (operating margin 18.97 percent and net profit margin 17.41 percent). 

Financial Analysis: The total debt represents 28.19 percent of the company’s assets and the total debt in relation to the equity amounts to 40.56 percent. Due to the financial situation, a return on equity of 5.89 percent was realized. Twelve trailing months earnings per share reached a value of $0.96. Last fiscal year, the company paid $1.39 in form of dividends to shareholders. 

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.46, P/S ratio 3.21 and P/B ratio 1.25. Dividend Yield: 7.68 percent. The beta ratio is not calculable.


Long-Term Stock History Chart Of PAA Natural Gas Storage (Click to enlarge)
Long-Term Dividends History of PAA Natural Gas Storage (PNG) (Click to enlarge)
Long-Term Dividend Yield History of PAA Natural Gas Storage (NYSE: PNG) (Click to enlarge)

Public Service Enterprises (NYSE:PEG) has a market capitalization of $16.02 billion. The company employs 9,784 people, generates revenue of $11,079.00 million and has a net income of $1,407.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,679.00 million. The EBITDA margin is 33.21 percent (operating margin 24.40 percent and net profit margin 12.70 percent). 

Financial Analysis: The total debt represents 27.14 percent of the company’s assets and the total debt in relation to the equity amounts to 78.81 percent. Due to the financial situation, a return on equity of 14.14 percent was realized. Twelve trailing months earnings per share reached a value of $2.62. Last fiscal year, the company paid $1.37 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.08, P/S ratio 1.45 and P/B ratio 1.56. Dividend Yield: 4.48 percent. The beta ratio is 0.44.
Long-Term Stock History Chart Of Public Service Enterprises (Click to enlarge)
Long-Term Dividends History of Public Service Enterprises (PEG) (Click to enlarge)
Long-Term Dividend Yield History of Public Service Enterprises (NYSE: PEG) (Click to enlarge)

Northeast Utilities (NYSE:NU) has a market capitalization of $12.00 billion. The company employs 6,063 people, generates revenue of $4,465.66 million and has a net income of $400.51 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,096.37 million. The EBITDA margin is 24.55 percent (operating margin 17.78 percent and net profit margin 8.97 percent). 

Financial Analysis: The total debt represents 34.36 percent of the company’s assets and the total debt in relation to the equity amounts to 130.20 percent. Due to the financial situation, a return on equity of 10.09 percent was realized. Twelve trailing months earnings per share reached a value of $1.85. Last fiscal year, the company paid $1.10 in form of dividends to shareholders. 

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.72, P/S ratio 2.68 and P/B ratio 1.68. Dividend Yield: 3.60 percent. The beta ratio is 0.48.


Long-Term Stock History Chart Of Northeast Utilities (Click to enlarge)
Long-Term Dividends History of Northeast Utilities (NU) (Click to enlarge)
Long-Term Dividend Yield History of Northeast Utilities (NYSE: NU) (Click to enlarge)

EQT Corporation (NYSE:EQT) has a market capitalization of $8.25 billion. The company employs 1,835 people, generates revenue 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. The EBITDA margin is 61.45 percent (operating margin 40.76 percent and net profit margin 29.26 percent). 

Financial Analysis: The total debt represents 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 $2.48. 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 22.21, P/S ratio 4.97 and P/B ratio 2.27. Dividend Yield: 1.62 percent. The beta ratio is 0.82.
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 the best dividend paying utilities. The average price to earnings ratio (P/E ratio) amounts to 18.65 and forward P/E ratio is 15.70. The dividend yield has a value of 3.77 percent. Price to book ratio is 1.71 and price to sales ratio 2.34. The operating margin amounts to 22.94 percent and the beta ratio is 0.61. The average stock has a debt to equity ratio of 0.82.

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

Best Dividend Paying Utilities (Click to enlarge)

 Related stock ticker symbols:
PNG, PEG, ALE, LNT, PNW, NU, ENI, AWR, YORW, OGE, SBS, 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.