Generally, companies in the utilities sector, such as Spark Energy and York Water, often provide attractive dividend yields due to relatively stable earnings as these are considered defensive sectors that can make money in any economic environment. Therefore, these companies provide a strong reliable stream of constant income which is a great diversifier during economic downturns. I’ve identify the following utilities stocks paying high income, which may increase the value of your portfolio.
Spark Energy, Inc. (NASDAQ:SPKE)
SPKE has a substantial dividend yield of 6.30% and their payout ratio stands at 60.25% . SPKE is among the markets top 25% of dividend payers, which is certainly enticing for interested investors. The company has a lower PE ratio than the US Electric Utilities industry, which interested investors would be happy to see. The company’s PE is currently 9.6 while the industry is sitting higher at 14.5. More on Spark Energy here.
The York Water Company (NASDAQ:YORW)
YORW has a nice dividend yield of 2.06% and distributes 64.75% of its earnings to shareholders as dividends . The company’s DPS have increased from US$0.48 to US$0.67 over the last 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Continue research on York Water here.
Star Group, L.P. (NYSE:SGU)
SGU has a sumptuous dividend yield of 4.82% and is currently distributing 52.76% of profits to shareholders . SGU’s dividends have increased in the last 10 years, with DPS increasing from US$0.27 to US$0.47. They have been dependable too, not missing a single payment in this time. More on Star Group 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.