There’s a reason why they call utilities “widow & orphan” stocks. Their steady base and constant demand make ideal selections for conservative investors. But being conservative doesn’t mean no or low growth. In fact, the sector is full of growth opportunities and our newest Best Dividend Stocks Model Portfolio pick is one such pick.
Our pick is one of the largest utilities in the nation. But unlike a traditional utility that owns a monopoly on an area, our pick is a so-called competitive power market utility. This focus is different and brings plenty of cash flows to its bottom line. Moreover, the last few years have been spent right-sizing its portfolio, reducing debt, and strengthening its bottom line.
This transformation has returned our pick into a top dividend name once more. And with continued power demand and renewables growth on the horizon, there’s plenty of runway for our pick. With a high 3.7% yield, it’s worth keeping an eye on the stock when it goes ex-dividend on Friday, April 29 (estimated date).
To make room for this utility pick, we had to remove an environmental services stock from our list this week.
You can check out the Best Dividend Stocks Model Portfolio to explore all the stocks.
