One of the best paying dividend stock on our list is Black Hills. Dividend stocks are a great way to hedge your portfolio as they provide both steady income and cushion against market risks Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Here are other similar dividend stocks that could be valuable additions to your current holdings.
Black Hills Corporation (NYSE:BKH)
Black Hills Corporation, through its subsidiaries, operates as a vertically-integrated utility company in the United States. Started in 1941, and headed by CEO David Emery, the company size now stands at 2,744 people and with the market cap of USD $2.87B, it falls under the mid-cap group.
BKH has a decent dividend yield of 3.55% and the company has a payout ratio of 49.62% , with the expected payout in three years being 59.52%. BKH has increased its dividend from US$1.40 to US$1.90 over the past 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. The company outperformed the us integrated utilities industry’s earnings growth of -2.14%, reporting an EPS growth of 41.57% over the past 12 months. More on Black Hills here.
Spire Inc. (NYSE:SR)
Spire Inc., through its subsidiaries, engages in the purchase, retail distribution, and sale of natural gas to residential, commercial, industrial, and other end-users of natural gas customers in the United States. Founded in 1857, and currently lead by Suzanne Sitherwood, the company size now stands at 3,279 people and with the stock’s market cap sitting at USD $3.48B, it comes under the mid-cap category.
SR has a solid dividend yield of 3.13% and pays 43.85% of it’s earnings as dividends , with analysts expecting the payout ratio in three years to be 60.08%. SR’s last dividend payment was US$2.25, up from it’s payment 10 years ago of US$1.50. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Spire’s performance over the last 12 months beat the us gas utilities industry, with the company reporting 63.20% EPS growth compared to its industry’s figure of 14.15%. Continue research on Spire here.
Westar Energy, Inc. (NYSE:WR)
Westar Energy, Inc., an electric utility company, generates, transmits, and distributes electricity in Kansas. Formed in 1924, and currently run by Mark Ruelle, the company employs 2,205 people and with the company’s market capitalisation at USD $7.31B, we can put it in the mid-cap group.
WR has a solid dividend yield of 3.11% and has a payout ratio of 70.50% . The company’s DPS has increased from US$1.16 to US$1.60 over the last 10 years. They have been consistent too, not missing a payment during this 10 year period. Dig deeper into Westar Energy here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.