At the Climate Meetings in Paris, one of the many solutions to climate change is to have more vehicles move from gas powered to electric powered with the electricity generated as clean as possible. If that change happens, the utilities companies will continue to be even more valuable. At the moment we look at utilities both for their continuing abilities to pay a dividend and the outlook for interest rates. If interest rates go up, the stock tends to go down, however the dividend rate continues to be paid. What companies are the ones to buy?
Peter Ashton of Recognia Inc published a chart in one of the newspapers on oversold US Utility Stocks.
The criteria he used
- minimum market capitalization of $ 20 billion or the larger more established companies
- companies are currently trading at least 10% below their 52 week high.
- dividend yield of at least 3%
Rank Company Ticker Recent Mkt Cap % chg Dividend
Close US Bill from 52 high yield
- Exelon EXC-N 27.70 25.5 -28.8% 4.5%
- Duke Energy DUK-N 67.72 46.8 -24.7 4.9
- Southern Co SO-N 44.58 40.7 -16.1 4.9
- Dominion Resources D-N 67.22 40.1 -16.9 3.9
- American Electric AEP-N 55.61 27.3 -14.9 4.0
- PPL Corp PPL-N 33.65 22.7 -11.8 4.5
- PG&E PCG-N 52.36 25.7 -13.0 3.5
- NextEra Energy NEE-N 98.88 45.7 -12.2 3.1
Linking to dividend paying stocks, the important aspect of this chart is trying to lower your risk and keep your money. To lower the risk, narrow the field and determine why the companies went down and sometimes the market oversells. By exercising control or doing nothing but ready to do something, you can buy seemingly bargains. Are the companies a good buy now, it depends on how long you intend to keep them. If for a long time, the answer is yes.
There is more questions than answers, till the next time – to raising questions,
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