Sunday, 26. February 2017  
05.05.2016 06:48
Author: Alex Waber

STOCK SCREEN: Utilities Stocks With Good Dividend Yield And Solid Growth

 

As the markets turn and investors grow more conservative, defensive assets like utilities stocks are back in the limelight. The utilities sector is known for its reliability and income generation. Additionally, the area may also be seen as a tactical bet on low interest rates and long-term growth in electricity demand.

 

Even though investors fear rising interest rates, financial markets might be overly concerned with interest rates, judged by the current trend of our IRM Economic Activity Index. As utilities continued to outperform the broad stock market since our last note on the sector, we are taking a look at the sector again this week and screen for stocks with still good dividend yield and solid growth profile.

 

Here are the filter criteria:

1. Market capitalization above 1 bn.

2. Revenue growth above average.

3. Profit growth above average

4. Dividend yield above 3 percent

 

Here is our list of stocks matching all criteria in alphabetical order. Upside to our AVM’s intrinsic value estimates was found at only one stock in the list. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

INDUSTRY

LAST PRICE

MARKET CAP.

PRICE / EARNINGS

DIVIDEND YIELD [%]

 AMERICAN ELECTRIC POWER

 United States

 Electric Utility

64.36

31621

17.3

3.5

 CANADIAN UTILITIES LTD-A

 Canada

 Gas Utility

36.52

10591

19.1

3.6

 CONSOLIDATED EDISON INC

 United States

 Electric Utility

75.40

22158

18.6

3.6

 DTE ENERGY COMPANY

 United States

 Electric Utility

90.13

16173

18.2

3.4

 HERA SPA

 Italy

 Electric Utility

2.58

3840

21.3

3.6

 NEXTERA ENERGY INC

 United States

 Electric Utility

118.06

55085

19.5

3.0

 PINNACLE WEST CAPITAL

 United States

 Electric Utility

73.35

8152

18.3

3.5

 SOUTHERN CO/THE

 United States

 Electric Utility

50.41

46320

17.6

4.5

 TERNA SPA

 Italy

 Electric Utility

4.88

9801

18.5

4.3

 XCEL ENERGY INC

 United States

 Electric Utility

40.51

20577

18.4

3.4