Bonds are not paying enough interest and you’re looking for « safer » dividend stocks to compensate? Utilities stocks may be the solution for your portfolio. But, don’t think that all utilities are safe investments. They are still companies and can still leave you with a sour taste in your mouth. This is why we will look into the world of utilities.


    First; Why Invest in Utilities?


    The utility sector is particularly interesting in the US for dividend investors. This is the realm of steady and high dividend yields. In this sector, it’s not hard to find a 4% dividend stock (there are also a few great 5% stocks too!). The utility sector is known to maintain a dividend payout ratio around 50% (electricity) and 60%-70% (water) and it is useful to follow these guidelines. The sector will bring stability and push your overall portfolio dividend yield higher.


    As the current stock market is put under pressure, utility stocks can be a great way to diversify your portfolio while adding more stability. Don’t expect incredible growth from this sector, remember, we are not talking about the techno boom, we are talking about companies supplying electricity and water. As people don’t make their utility bills explode because they suddenly need to consume more electricity, there is more of a steady increase due to demographics, inflation as well as bad weather from time to time. 2013 was particularly cold in the USA (trust me, in Canada too!) and this is why utility stocks were able to follow the bullish parade.


    Dividend Stocks Rock Premium Newsletter covered 8 utilities showing strong metrics. I’m sharing here with you 1 stock analysis that scored very high in our ranking.


    Wisconsin Energy (WEC) Rock Solid Ranking 78pts

    Wisconsin Energy Corporation’s principal business is providing electric and natural gas service. Based in Milwaukee, Wisconsin, it serves more than 1.1 million electric customers in Wisconsin and Michigan’s Upper Peninsula and more than 1 million natural gas customers in Wisconsin through its utility subsidiary, We Energies. Other subsidiaries are We Power, which designs, builds and owns electric generating plants; and Wispark, LLC, which develops and invests in real estate, industrial/office buildings and urban redevelopment projects. The company was founded in 1981.


    It has been chosen in my best 2012, 2013 and 2014 dividend stocks. Each year, WEC has proven it deserves its place each time. Management has made a strong commitment to pay down debts and respect a 55% debt to equity ratio.


    Both EPS and dividend payouts are heading in the same direction… up!



    Its leadership position in its market allows Wisconsin Energy to benefit from a constant income which has led WED to increase its dividend payout several times over the past 5 years (the dividend doubled from 2007 to 2012). A new share repurchase program announced in December along with higher expectations from management should be enough to push WEC a little further. I like utility stocks like WEC as you can count on a solid performance year after year.

    Unfortunately, all good things are not forever. Regulations may slowdown income growth in the future and could hurt WEC. Since it is currently trading at a relatively high P/E ratio (18.72), I would prefer to buy IDA than WEC at the moment (especially since WEC is up another 13% ytd!).


    You Want More? Checkout what Dividend Stocks Rock has to offer!


    Dividend Stocks Rock offers a bi-weekly premium investing newsletter along with real-life portfolio models, dividend stock lists and their exclusive ranking system looking over 500 companies!

    DSR logo

    2 Comments   |   Read more >


    Last week, I gave as much detail as possible on my dividend growth model. The goal of this model is to build a ranking where all companies would be evaluated based upon several criteria. This leads to The Rock Solid Ranking available exclusively at Dividend Stocks Rock. But I also wanted to share a bit of this ranking with the top 20 most powerful dividend stocks to buy now for your portfolio.


    Since the ranking is based on fundamentals but also on the current stock value, the top 20 is definitely showing the most powerful dividend payers that are traded at an attractive price. They are not necessarily trading at a bargain price, but our model penalizes companies trading at premium. Since the difference between the top 20 and the next 50 is only a few points, I know these companies are high value dividend stocks.


    By sharing this post (just click on the image below), you will get see the top 20 most powerful dividend stocks to buy now:



    If You Want to Get This Ranking Updated Weekly Continue to Read


    As you know already, things are changing very fast on the stock market. Within a couple of months, this list will be outdated and won’t mean much. This is why we run our algorithm each week and provide a fresh ranking of all stocks in our universe; thats over 400 stocks included in our ranking. We also follow our results and keep improving our algorithm to create the most accurate ranking possible. We already take into consideration twelve metrics with different weights.


    The ranking is available at all time on my new site;  Dividend Stocks Rock where you can also find my 10 portfolio models, 8 dividend stock lists and my bi-weekly premium investing newsletter. This website is built to improve your portfolio management skills & productivity. We all know you should spend your Sunday afternoons looking at your investments, and we all know you don’t do it. Let us do it for you and enjoy the free time + the investment return with Dividend Stocks Rock. We are currently offering this service at the very low price of $149.95 for a 1 year membership.


    So, what do you think of the ranking? Any surprises?


    Check out the most powerful investing tool ever created for dividend investor:

    DSR logo

    12 Comments   |   Read more >


    This week, I’ve wrote about how we calculate The Rock Solid Ranking. It was a teaser for next Monday’s post where I will publish the top 20 of our ranking.


    Good Read for the Weekend:


    I’ve shared my #1 investing advice in a compilation of 22 Dividend Bloggers sharing their investing advice @ Dividend Growth Stock Investing


    Dividend Growth Investor explains how to manage new cash from dividend payouts


    Using Dividend Stocks as an Emergency Fund? @ Dividend Mantra


    Dividend Income update @ My Own Advisor


    Captain Dividend sold Intel (INTC)


    Understanding Currency Hedging @ Passive Income Earner


    April Stock Market outlook @ Hello Suckers


    9 CEO’s showing confidence in their company @ Dividend Growth Stock



    Dividend stocks Analysis:


    ADP (ADP) @ Brick by Brick

    Aliant Energy (LNT) @ Dividend Engineering

    McDonald’s (MCD) @ Intelligent Speculator

    Tal International (TAL) @ Dividend Ladder

    7 Comments   |   Read more >
  • Page 1 of 12312345...102030...Last »