Looking too add a high yield utility stock to your portfolio? Here’s a list to get you started.
We started our screen with with utility sector stocks with market caps north of $300 million). For sustainability we capped the dividend yield at 7%.
We ran those stocks we ran them through a final screen for positive accounts receivable trends. Receivable trends are encouraging because it helps to gauge whether the quality of sales, not just the quantity, is increasing over time. Note that this trend is especially important with dividend stocks because the payments comes from a portion of earnings. The stronger the earnings, the more reliable the dividend payment.
More on receivables: Receivables are payments not yet collected on, and there is no absolute guarantee that they will be collected. Our screen takes into account that revenues are increasing while outstanding payments due to the firm are being paid off more and more quarter to quarter. This means that the revenue coming in to a firm is healthier as more customers pay their bills in full.
Business Section: Investing Ideas
To recap, the list below meets the following criteria
- Utility sector
- Market cap above $300m
- Dividend, capped at 7%
- Increasing revenues in most recent quarters
- Decreasing account receivables relative to revenue growth
Do you think these utility stocks will continue to show encouraging accounting figures and healthier revenue?
Use this list as a starting point for your own analysis
Use the Compar-O-Matic to see changes in dividend yield for the names listed below:
1. Aqua America Inc. (WTR, Earnings, Analysts, Financials): Operates regulated utilities that provide water or wastewater services in the United States. Market cap at $3.66B, most recent closing price at $26.27. Dividend yield at 2.51%. Revenue grew by 4.05% during the most recent quarter ($170.24M vs. $163.62M y/y). Accounts receivable grew by -30.93% during the same time period ($77.86M vs. $112.73M y/y). Receivables, as a percentage of current assets, decreased from 71.85% to 31.97% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
2. Edison International (EIX, Earnings, Analysts, Financials): Engages in the supply of electric energy in central, coastal, and southern California. Market cap at $14.71B, most recent closing price at $45.77. Dividend yield at 2.88%. Revenue grew by 2.66% during the most recent quarter ($2,856M vs. $2,782M y/y). Accounts receivable grew by -3.71% during the same time period ($753M vs. $782M y/y). Receivables, as a percentage of current assets, decreased from 18.04% to 15.97% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
3. Enersis S.A. (ENI, Earnings, Analysts, Financials): Engages in the generation, transmission, and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. Market cap at $12.43B, most recent closing price at $16.60. Dividend yield at 3.02%. Revenue grew by 4.35% during the most recent quarter ($1,644,117M vs. $1,575,569M y/y). Accounts receivable grew by -7.26% during the same time period ($1,131,849M vs. $1,220,513M y/y). Receivables, as a percentage of current assets, decreased from 52.71% to 47.07% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
4. SJW Corp. (SJW, Earnings, Analysts, Financials): Engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water. Market cap at $433.29M, most recent closing price at $23.36. Dividend yield at 3.05%. Revenue grew by 17.05% during the most recent quarter ($51.15M vs. $43.7M y/y). Accounts receivable grew by -11.% during the same time period ($19.1M vs. $21.46M y/y). Receivables, as a percentage of current assets, decreased from 54.94% to 32.17% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
5. NextEra Energy, Inc. (NEE, Earnings, Analysts, Financials): Engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. Market cap at $28.7B, most recent closing price at $70.24. Dividend yield at 3.49%. Revenue grew by 7.56% during the most recent quarter ($3,371M vs. $3,134M y/y). Accounts receivable grew by -8.24% during the same time period ($1,837M vs. $2,002M y/y). Receivables, as a percentage of current assets, decreased from 44.3% to 36.06% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
6. TransCanada Corp. (TRP, Earnings, Analysts, Financials): Operates as an energy infrastructure company in North America. Market cap at $30.68B, most recent closing price at $44.18. Dividend yield at 3.93%. Revenue grew by 2.3% during the most recent quarter ($1,911M vs. $1,868M y/y). Accounts receivable grew by -14.91% during the same time period ($1,067M vs. $1,254M y/y). Receivables, as a percentage of current assets, decreased from 44.25% to 38.98% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
7. AGL Resources Inc. (GAS, Earnings, Analysts, Financials): Engages in natural gas distribution business in the United States. Market cap at $4.66B, most recent closing price at $40.11. Dividend yield at 4.63%. Revenue grew by 59.91% during the most recent quarter ($1,404M vs. $878M y/y). Accounts receivable grew by 3.62% during the same time period ($944M vs. $911M y/y). Receivables, as a percentage of current assets, decreased from 57.4% to 46.69% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
8. PPL Corporation (PPL, Earnings, Analysts, Financials): Generates and sells electricity; and delivers natural gas to approximately 5.3 million utility customers primarily in the northeastern and northwestern US. Market cap at $16.55B, most recent closing price at $28.85. Dividend yield at 5.05%. Revenue grew by 41.31% during the most recent quarter ($4,112M vs. $2,910M y/y). Accounts receivable grew by 0.62% during the same time period ($807M vs. $802M y/y). Receivables, as a percentage of current assets, decreased from 13.96% to 11.43% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).
Use the Compar-O-Matic to see average analyst recomendation (provided by Zacks)
(Written by Ryan Horch)
Use Kapitall’s Tools: Looking for ways to analyze this list?
Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…
Analyze These Ideas: Getting Started
Dig Deeper: Access Company Snapshots, Charts, Filings
- Aqua America Inc. (WTR, Chart, Download SEC Filings)
- Edison International (EIX, Chart, Download SEC Filings)
- Enersis S.A. (ENI, Chart, Download SEC Filings)
- SJW Corp. (SJW, Chart, Download SEC Filings)
- NextEra Energy, Inc. (NEE, Chart, Download SEC Filings)
- TransCanada Corp. (TRP, Chart, Download SEC Filings)
- AGL Resources Inc. (GAS, Chart, Download SEC Filings)
- PPL Corporation (PPL, Chart, Download SEC Filings)
New to Kapitall?
1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter
ABOUT KAPITALL WIRE
Kapitall Wire, which is not a broker/dealer, offers free cutting edge investing ideas, lively commentary and timely analysis of companies enhanced by interactive tools. And the Investing 101 section breaks complex concepts down to their basics, offering education to novices that doubles as a refresher course for more seasoned investors.
Kapitall Wire is a division of Kapitall Inc. Securities products and services are offered by Kapitall Generation, LLC, member FINRA/SIPC . Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.
