Generally, companies in the utilities sector, such as Unitil and Northwest Natural Gas, often provide attractive dividend yields due to relatively stable earnings as these are considered defensive sectors that can make money in any economic environment. These businesses, therefore, generate robust cash flows and payout high income to shareholders, making them valuable diversifiers during downturns. Below is my list of huge dividend-paying stocks in the utilities industry that continues to add value to my portfolio holdings.
Unitil Corporation (NYSE:UTL)
UTL has a solid dividend yield of 3.42% and the company currently pays out 70.26% of its profits as dividends . UTL’s last dividend payment was US$1.46, up from it’s payment 10 years ago of US$1.38. They have been consistent too, not missing a payment during this 10 year period. More on Unitil here.
Northwest Natural Gas Company (NYSE:NWN)
NWN has a solid dividend yield of 3.47% and a reasonably sustainable dividend payout ratio , and analysts are expecting the payout ratio in three years to hit 76.19%. NWN’s dividends have seen an increase over the past 10 years, with payments increasing from US$1.50 to US$1.89 in that time. The company has been a reliable payer too, not missing a payment during this time. Dig deeper into Northwest Natural Gas here.
Otter Tail Corporation (NASDAQ:OTTR)
OTTR has a solid dividend yield of 3.29% and pays out 70.03% of its profit as dividends . OTTR has increased its dividend from US$1.19 to US$1.34 over the past 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. More detail on Otter Tail here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our 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.