Photo of electric transmission lines.

Utility Sector Stocks

The utility sector remains my favorite sector to cover with the dividend growth sector watch lists. Utility companies generally offer a mix of predictable and reliable earnings growth, and often have defined shareholder return policies that are forthcoming about dividend growth expectations and targeted dividend payout ratios.

Both of these factors make the  sector ideal for this type of analysis, and makes forecasting dividend growth and income easier than for some of the other sectors in the stock market.

What Is A Utility Stock?

A utility stock is the stock of a company that provides a public utility service to its customers. This service generally comes in one of three forms: Electricity (generation and distribution), Natural Gas (transportation and distribution), Water (municipal water and wastewater).

  • Electric Utilities are companies that are involved with the generation, transmission, or distribution of electricity to residential, commercial, or industrial customers.
    • Electricity is generated in many ways, including by: Coal Power Plants, Natural Gas Power Plants, Nuclear Power Plants, Wind Turbines, Photo-voltaic (Solar) Hydroelectric (Dams, Tidal), Geothermal, and Bio-Mass.
  • Natural Gas Utilities are companies involved in the storage, transportation, and distribution of natural gas to customers.
  • Water Utilities are companies that treat water for potable use and distribute that water to customers. I have created a separate spreadsheet dedicated strictly to the water utilities.

This watch list will focus on utilities that operate in the gas and electric utility businesses.

Utility Sector Dividend Income And Total Return Projections.

The watch list of my top 30 dividend growth stocks from the utility sector was updated with new information as of the week of September 15th, 2017.

I am sharing this spreadsheet with my readers for information purposes only and this list is not intended as a buy recommendation for any of the companies mentioned.

Please keep in mind that the information contained in the document is subject to change and will not be updated unless otherwise noted.

Here is the link for a PDF of that spreadsheet.

My coverage of the utility sector includes occasional articles highlighting my picks for the best dividend growth utilities in the market. Here are the articles I have written on Seeking Alpha covering the sector to date:

December 30th, 2016

2017’s Top Ten Utility Stocks For Dividend Growth And Income

May 2, 2016:

Buyer Beware! My Top Income Stocks In An Expensive Utility Sector

December 21, 2015:

The Top 10 Utility Stocks For 2016 And Beyond

June 17, 2016:

Top 10 Utilities For Dividend Growth And Income

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