Thursday, April 04, 2013

Sequestration Resistant Investments



Are you concerned about how sequestration will affect your portfolio?  Are you looking for companies in which to invest that aren’t likely to be affected?  Look no further than the utility industry.  Why?  Utility companies tend to have highly stable revenues and above average dividend payouts which makes them very attractive to investors during an uncertain economy.

With that in mind, Paul Zimbardo has compiled this list of six utility companies set to declare dividends this week.  Please view his original article to see how he came up with these companies, and remember to always perform your own research before purchasing any stock.

Pepco Holdings, Inc. (POM): 5.26% Yield; Ex-Dividend 3/7
Geography: Northeast United States (Maryland and Washington DC)
Customers: 800,000
Financial Performance and Metrics: Source - (Finviz.com)
  • Forward P/E: 16.69
  • Book Value: $19.40
  • Price/Book: 1.05
  • Debt/Equity: 1.22
  • Revenue Growth/(Contraction) (QoQ): (10.44%)
  • EPS Growth/(Contraction) (YoY): 85.39%
  • Payout Ratio: 92.8%
  • Dividend History: $0.27 per share
PPL Corporation (PPL): 4.77% Yield; Ex-Dividend 3/6
Geography: United Kingdom and Eastern United States (Pennsylvania, Kentucky, Virginia, and Tennessee)
Customers: 10 million (7.8M in the United Kingdom)
Financial Performance and Metrics:
  • Forward P/E: 14.20
  • Book Value: $18.01
  • Price/Book: 1.71
  • Debt/Equity: 1.92
  • Revenue Growth/(Contraction) (QoQ): (23.61%)
  • EPS Growth/(Contraction) (YoY): (2.41%)
  • Payout Ratio: 54.82%
  • Dividend History: $.3675 per share
UIL Holdings Corp (UIL): 4.39% Yield; Ex-Dividend 3/7
Geography: Northeast United States (Connecticut and Massachusetts)
Customers: 700,000
Financial Performance and Metrics:
  • Forward P/E: 16.26
  • Book Value: $21.90
  • Price/Book: 1.80
  • Debt/Equity: 1.63
  • Revenue Growth/(Contraction) (QoQ): 0.74%
  • EPS Growth (YoY): 28.80%
  • Payout Ratio: 91.27%
  • Dividend History: $.42 per share
Public Service Enterprise Group Inc. (PEG): 4.38% Yield; Ex-Dividend 3/6
Geography: Northeast United States (New Jersey)
Customers: 4 million
Financial Performance and Metrics:
  • Forward P/E: 14.10
  • Book Value: $21.36
  • Price/Book: 1.54
  • Debt/Equity: N/A
  • Revenue Growth/(Contraction) (QoQ): (8.73%)
  • EPS Growth/(Contraction) (YoY): (9.4%)
  • Payout Ratio: N/A
  • Dividend History: $.36 per share
Westar Energy Inc (WR): 4.31% Yield; Ex-Dividend 3/7
Geography: Central United States (Kansas)
Customers: 700,000
Financial Performance and Metrics:
  • Forward P/E: 15.46
  • Book Value: $22.84
  • Price/Book: 1.38
  • Debt/Equity: 1.14
  • Revenue Growth/(Contraction) (QoQ): 2.6%
  • EPS Growth/(Contraction) (YoY): 7.29%
  • Payout Ratio: 67.59%
  • Dividend History: $.34 per share
SCANA Corporation (SCG): 4.14% Yield; Ex-Dividend 3/7
Geography: Southern United States (The Carolinas and Georgia)
Customers: 1 million
Financial Performance and Metrics:
  • Forward P/E: 14.26
  • Book Value: $31.14
  • Price/Book: 1.58
  • Debt/Equity: N/A
  • Revenue Growth/(Contraction) (QoQ): 8.4%
  • EPS Growth/(Contraction) (YoY): 6%
  • Payout Ratio: N/A
  • Dividend History: $.5075 per share

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