Established in 1904 and headquartered in Charlotte, North Carolina, Duke Energy Corporation is a natural gas distribution company. It offers infrastructure in gas utilities, and commercial renewables, alongside other energy-related services.
This company is not a newcomer to the utility stock scene, and it has achieved high opening and closing prices. Nonetheless, nothing stays constant in the stock market. Although Duke Energy is a good utility stock with dividends, is it a good buy at the moment?
This article will answer that question, and also offer reasons why. You can read this article for other utility stocks that you can consider if you wish to expand your investment portfolio.
10 Utility Dividend Stocks with High Yields
Companies make a profit, and dividends are the portion of a company’s profit that its shareholders obtain. Dividend yields are a percentage representation of the annual payments that shareholders receive from a company. It also expresses what investors can expect from that stock's future earnings.
Apart from dividend yields, the stocks on our list are chosen for their Earnings Per Share, total customers, and other factors. The various factors explaining why they were chosen are covered here.
- National Grid Plc (NGG): 5.32% yield
- Dominion Energy (D): 4.73% yield
- Edison International (EIX): 4.45% yield
- The Southern Company (SO): 4.19% yield
- PPL Corporation (PPL): 4.14% yield
- Duke Energy Corporation (DUK): 4.02% yield
- Entergy (ETR): 3.68% yield
- Exelon (EXC): 3.30% yield
- Sempra Energy (SRE): 3.14% yield
- NRG Energy (NRG): 2.86% yield
National Grid Plc (NGG)
National Grid Plc is the best high dividend utility stock that any investor can get their hands on. Established in 1989, this utility company deals in the transmission and distribution of gas and electricity.
This company offers a dividend per share of $3.11, with a dividend yield of 5.32%. It also has a positive Earning Per Share (EPS) of $13.02 and a Price to Earnings (PE) ratio of 10.02. All of these factors combine to make National Grid Plc a good investment.
Dominion Energy (D)
William W. Berry founded Dominion Energy in 1983, with its headquarters located in Richmond, Virginia. This company operates in the gas infrastructure, power generation infrastructure, and power delivery infrastructure.
With a dividend yield of 4.73%, Dominion Energy earns its place as a good utility stock with dividends. It also has a dividend per share of $3.74, an EPS of -$0.31, and a PE ratio of -631.31%. With such an EPS and PE ratio, Dominion Energy is not a good buy at the moment.
Edison International (EIX)
As one of the largest electric utility holding companies, Edison International offers good utility stocks with dividends. This company is headquartered in Rosemead, California, and offers clean energy through its independent companies like the Southern California Edison Company.
Edison International has a dividend per share of $2.68 and a dividend yield of 4.45%. This stock is also a good buy with its $1.53 EPS and PE ratio of 39.305.
The Southern Company (SO)
The Southern Company is an electric utility holding company that sells electricity. Besides the Traditional Electric Operating Company, this company also operates in the Southern Company Gas and Southern Power segments.
The Southern Company offers a dividend per share of $2.54 and a dividend yield of 4.19%. This makes it a high dividend utility stock. With an EPS of $2.99 and a PE ratio of 20.27, The Southern Company is a good buy.
PPL Corporation (PPL)
This is a nuclear electric power generation company that also offers electricity delivery services. PPL is one of the best utility stocks around with a dividend yield of 4.14%, making it a good buy. It offers a dividend per share of $1.05, an EPS of 0.98, and a PE ratio of 25.5.
Duke Energy Corporation (DUK)
Duke Energy has a dividend yield of 4.02%, which makes it a utility stock with high dividends. Its dividend per share is $3.80, while its EPS and PE ratios are $2.74 and 34.55, respectively. All of these factors make Duke Energy a good buy.
This is another nuclear energy power generation corporation that offers top utility stocks. It is intended to provide the cleanest large-scale power generation in the United States. This includes 8000 megawatts of nuclear power and 30,000 megawatts of electric power.
The dividend yield of Entergy is 3.86% and the dividend per share is $3.99. The PE ratio and EPS of Entergy are 17.163 and $6.02, respectively, making it a good buy.
Exelon Corporation is a nuclear electric power generation company. It's one of the companies in the utility sector with the best utility stocks for investors.
The dividend yield of Exelon is 3.30%, while its dividend per share is $1.51. This corporation has a PE ratio of 22.774 and an EPS of $2.01, making it a good buy.
Sempra Energy (SRE)
Sempra Energy is a gas distributor that was established in 1996, with its headquarters in San Diego, California. The infrastructure of this company enables it to offer gas and electric services.
As one of the best utility stocks that investors can go for, this company offers a dividend yield of 3.14%. Sempra Energy’s dividend per share is $4.10, while its PE ratio and EPS are 10.02 and $13.02, respectively. All of this makes this stock a good buy for any investor.
NRG Energy (NRG)
NRG Energy Incorporated is an electric utility company that deals with the production, distribution, and sale of energy services. This company was founded in 1989, and it’s located in Princeton, New Jersey.
NRG Energy offers high dividend utility stocks with a dividend yield of 2.86%. It offers a dividend per share of $0.93, an EPS of $16.57, and a PE ratio of 1.96. This makes it a good buy at the moment.
7 Best Utility Stocks to Buy Now for Income
Apart from high dividends, other factors make a top utility stock. Some of these factors include stable price appreciation and their return on investment. Below are the best utility stocks to buy based on their income generation ability at the moment.
- The Southern Co. (SO)
- Sempra Energy (SRE)
- Dominion Energy, Inc. (D)
- NextEra Energy Inc (NEE)
- NRG Energy, Inc. (NRG)
- American Water Works Co. Inc. (AWK)
- American Electric Power Co., Inc. (AEP)
These are not the only utility stocks worth purchasing right now, if you are interested in more, you can check here.
Besides the utilities mentioned above, others deserve a mention. These honorable mentions would have been one of the top utility stocks if not for some unfortunate circumstances.
One Gas Inc. (OGS)
Winter Storm Uri caused a lot of damage in 2021, and One Gas Inc was on the receiving end of this. This company experienced a sharp drop in its gas supply business, despite the high demand for gas that year. Notwithstanding, this company is already on its recovery path, and it has experienced a 28% increase in share price.
Portland General Electric Company (NYSE: PGE)
Bad buys are inevitable for even experienced investors, and Portland General Electric Company was one such buy. The shares of this company dropped by 14% within 3 years.
Nonetheless, this company has grown its EPS by 7.1% and also increased its revenue by 6.8%. This shows that this company is slowly rising once again.
Algonquin Power & Utility Corp. (AQN)
In the last two trading sessions, AQN lost up to 35% and $3 billion of its market cap. For a defensive stock, this is quite the loss, making many investors apprehensive. Nonetheless, Algonquin remains a utility company, so investors can be certain of stable dividend payments.
Duke Energy is a high dividend utility stock with a dividend yield of 4.02%. When this is paired with a good dividend per share, EPS, and PE ratio, Duke Energy is a good buy. So, if you’ve been contemplating this utility stock, you could go for it.
Besides Duke Energy, we’ve also offered other top utility stocks that investors can consider.
Frequently Asked Questions (FAQ)
Do Utility Stocks Pay High Dividends?
Yes, the best utility stocks pay high dividends to shareholders. Although water utility stocks generally do not pay high dividends, electric utility stocks do.
What Is the Best Utility Stock to Buy Right Now?
The best utility stock on the market at the moment is National Grid Plc. This company offers a 5.32% dividend yield, a $3.11 dividend per share, and a positive EPS and PE ratio.
Why Do Utility Stocks Pay High Dividends?
Utility stocks offer consistent dividends and a stable flow of income for investors. Compared to the high dividends that other volatile stocks offer, many investors value this stability. As many investors are rushing into utility stocks, their valuations have increased, offering them more to pay investors.