The Complete List of All 246 Utility Stocks That Pay Dividends Sure Dividend

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The Complete List of All 246 Utility Stocks That Pay Dividends


Updated weekly on Wednesdays

Utility stocks can make excellent investments for long-term dividend growth investors.

Strong, regulatory-based competitive advantages allow these companies to consistently raise their dividend payments year in and year out. Even better, many utility stocks have above-average dividend yields, providing a compelling combination of income now and growth later for long-term investors.

Because of these favorable industry characteristics, we’ve compiled a list of all 246 dividend-paying stocks in the utility sector which you can download below:

 

You can view a preview of our utility stocks list below:

Keep reading this article to learn more about the benefits of investing in utility stocks.

How To Use The Utility Dividend Stocks List To Find Investment Ideas

Having an Excel database of all the dividend-paying utility stocks combined with important investing metrics and ratios is very useful.

This tool becomes even more powerful when combined with knowledge of how to use Microsoft Excel to find the best investment opportunities.

With that in mind, this section will provide a quick explanation of how you can instantly search for utility stocks with particular characteristics, using two screens as an example.

The first screen that we will implement is for utility stocks with price-to-earnings ratios below 15.

Screen 1: Low P/E Ratios

Step 1: Download the Utility Dividend Stocks Excel Spreadsheet List at the link above.

Step 2: Click the filter icon at the top of the price-to-earnings ratio column, as shown below.

Utility Dividend Stocks Landing Page Excel 1

Step 3: Change the filter field to ‘Less Than’, and input ’15’ into the field beside it.

Utility Dividend Stocks Landing Page Excel 2

The remaining list of stocks contains dividend-paying utility stocks with price-to-earnings ratios less than 15. As you can see, there are relatively few securities (at the time of this writing) that meet this strict valuation cutoff.

The next section demonstrates how to screen for large-cap stocks with high dividend yields.

Screen 2: Large Cap Stocks With High Dividend Yields

Businesses are often categorized based on their market capitalization. Market capitalization is calculated as stock price multiplied by the number of shares outstanding and gives a marked-to-market perception of what people think a business is worth on average.

Large-cap stocks are loosely defined as businesses with a market capitalization above $10 billion and are perceived as lower risk than their smaller counterparts. Accordingly, screening for large-cap stocks with high dividend yields could provide interesting investment opportunities for conservative, income-oriented investors.

Here’s how to use the Utility Dividend Stocks Excel Spreadsheet List to find such investment opportunities.

Step 1: Download the Utility Dividend Stocks Excel Spreadsheet List at the link above.

Step 2: Click the filter icon at the top of the Market Cap column, as shown below.

Utility Dividend Stocks Landing Page Excel 3

Step 3: Change the filter setting to ‘Greater Than’, and input 10000 into the field beside it. Note that since market capitalization is measured in millions of dollars in this Excel sheet, filtering for stocks with market capitalizations greater than ‘$10,000 millions’ is equivalent for screening for those with market capitalizations exceeding $10 billion.

Utility Dividend Stocks Landing Page Excel 4

Step 4: Close that filter window (by exiting it, not by clicking ‘clear filter’) and click on the filter icon for the ‘dividend yield’ column, as shown below.

Utility Dividend Stocks Landing Page Excel 5

Step 5: Change the filter setting to ‘Greater Than’ and input 0.03 into the column beside it. Note that 0.03 is equivalent to 3%.

Utility Dividend Stocks Landing Page Excel 6

The remaining stocks in this list are those with market capitalizations above $10 billion and dividend yields above 3%. This narrowed investment universe is suitable for investors looking for low-risk, high-yield securities.

You now have a solid fundamental understanding of how to use the Utility Dividend Stocks Excel Spreadsheet List to its fullest potential. The remainder of this article will discuss the characteristics that make the utility sector attractive for dividend growth investors.

Why Utility Dividend Stocks Make Attractive Investments

The word ‘utility’ describes a wide variety of business models but is usually used as a reference to electric utilities – companies that engage in the generation, transmission, and distribution of electricity. Other types of utilities include propane utilities and water utilities.

So why do these businesses make for attractive investments?

Utilities usually conduct business in highly regulated markets, complying with rules set by federal, state, and municipal governments.

While this sounds highly unattractive on the surface, what it means in practice is that utilities are basically legal monopolies. The strict regulatory environment that utility businesses operate in creates a strong and durable competitive advantage for existing industry participants. For this reason, electric utilities are among the most popular stocks for long-term dividend growth investors – especially because they tend to offer above-average dividend yields.

Indeed, the regulatory-based competitive advantages available to utility stocks allow them to raise their dividends very consistently. Simply put, utility stocks are some of the most dependable dividend growth stocks around.

To provide a few examples, the following utility stocks have exceptionally long streaks of consecutive dividend increases:

The long streak of consecutive dividend increases is possible only because of their unique industry-specific competitive advantages.

Clearly, the utility sector is very stable. People are going to need electricity in ever-increasing amounts for the foreseeable future.

One characteristic that does not describe utility stocks is fast-growing. One of the regulatory constraints imposed upon utility companies is the pace at which they can increase the rate fees paid by their customers. These rate increases are usually in the low-single-digits, which provides a cap on the revenue growth experienced by these companies.  Utility stocks typically don’t offer strong total returns, but there are exceptions.

Accordingly, utility investors must be willing to accept sluggish growth in exchange for the stability that comes from doing business as a regulated utility.

Final Thoughts

The utility sector is a great place to find high-quality dividend stocks suitable for long-term investment.

It is not, however, the only place to find attractive investments.

If you’re willing to venture outside of the utility industry while searching for investment opportunities, the following Sure Dividend databases are very useful:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.


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