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. Therefore, these companies provide a strong reliable stream of constant income which is a great diversifier during economic downturns. Below is my list of huge dividend-paying stocks in the utilities industry that continues to add value to my portfolio holdings.
The York Water Company (NASDAQ:YORW)
YORW has a good-sized dividend yield of 2.27% and is currently distributing 66.44% of profits to shareholders . YORW’s dividends have increased in the last 10 years, with DPS increasing from $0.484 to $0.6664. The company has been a dependable payer too, not missing a payment in this 10 year period. More detail on York Water here.
Connecticut Water Service, Inc. (NASDAQ:CTWS)
CTWS has a good-sized dividend yield of 2.27% and is paying out 54.95% of profits as dividends , with analysts expecting the payout ratio in three years to be 55.15%. In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.87 to $1.19. It should comfort existing and potential future shareholders to know that CTWS hasn’t missed a payment during this time. More detail on Connecticut Water Service here.
Consolidated Communications Holdings, Inc. (NASDAQ:CNSL)
CNSL has a juicy dividend yield of 13.97% and a reasonably sustainable dividend payout ratio , with the expected payout in three years hitting 903.35%. CNSL’s DPS have risen to $1.54952 from $1.5495 over a 10 year period. They have been consistent too, not missing a payment during this 10 year period. More detail on Consolidated Communications Holdings 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.