Regulators typically set customer rates for utilities to ensure investors recover a fair return on capital and allows the businesses keep their systems well maintained. This means utilities companies are among the most defensive investments with solid cash flows and high dividend payouts. 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.
Duke Energy Corporation (NYSE:DUK)
DUK has a good-sized dividend yield of 3.97% and has a payout ratio of 88.53% . DUK’s last dividend payment was $3.56, up from it’s payment 10 years ago of $2.64. They have been consistent too, not missing a payment during this 10 year period.
Dominion Energy, Inc. (NYSE:D)
D has a solid dividend yield of 3.79% and their payout ratio stands at 87.38% . D’s DPS have risen to $3.08 from $1.58 over a 10 year period. To the enjoyment of shareholders, the company hasn’t missed a payment during this period.
The Southern Company (NYSE:SO)
SO has a substantial dividend yield of 4.46% with a generous payout ratio . The company’s dividends per share have risen from $1.61 to $2.32 since it started paying dividends 10 years ago. They have been dependable too, not missing a single payment in this time. Analysts are expecting an impressive triple digit earnings growth over the next three years.
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.