Utilities are most successful when they do what they are designed to do.
And that’s to provide power, water or gas in a strong operating area. This sums up our regional utility best dividend stock to a “T.” Our pick is a rarity in the utility sector. The firm derives 100% of its revenue from providing power to its customers. There are no side business or unrelated assets, which haven’t been a hindrance for our utility pick.
That’s because the firm’s assets and customer base are located in one of the fastest-growing and strongest economic regions of the country. And since our initial selection, the regional utility has used its great operating area to power its earnings, cash flows and, ultimately, its dividend-paying ability.
Moreover, our utility pick has plenty of potential to power gains in the years ahead. Featuring plenty of grid monetization plans, renewable energy generation and very favorable regulatory authority, our pick has the goods to keep the gains and dividend increases coming in the years ahead.
To summarize, here are five reasons why you should own this stock:
- Increased its dividend by over 50% since its IPO in 2006.
- Amazing balance sheet with plenty of liquidity and top-notch debt ratings from Moody’s and the S&P 500.
- Extensive portfolio of solar, wind and hydroelectric assets.
- Operates in a friendly regulatory environment with a return of equity cap at 9.5%.
- Low utility sector payout ratio of 60% and healthy yield of 3.10%.