Value-Adding Utilities Dividend Stocks To Buy Now
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. I’ve identify the following utilities stocks paying high income, which may increase the value of your portfolio.
Emera Incorporated (TSX:EMA)
EMA has a large dividend yield of 5.55% and is paying out 171.08% of profits as dividends . The company’s DPS have increased from CA$0.95 to CA$2.26 over the last 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Emera is also a strong prospect for its future growth, with analysts expecting the company’s earnings to grow by an exciting triple-digit over the next three years. More detail on Emera here.
Brookfield Renewable Partners L.P. (TSX:BEP.UN)
BEP.UN has a great dividend yield of 6.34% and a reasonably sustainable dividend payout ratio , with the expected payout in three years hitting 273.97%. BEP.UN’s dividends have increased in the last 10 years, with DPS increasing from US$1.25 to US$2.52. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. The company’s latest earnings per share figure was CA$-0.25, up 57.33% from the previous year. More on Brookfield Renewable Partners here.
Fortis Inc. (TSX:FTS)
FTS has a sizeable dividend yield of 4.00% and pays out 69.77% of its profit as dividends , and analysts are expecting a 70.17% payout ratio in the next three years. FTS has increased its dividend from CA$1.00 to CA$1.70 over the past 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Continue research on Fortis 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.
