A Utility Resurgence? 6 Stocks Yielding up to 8.9%

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A Utility Resurgence? 6 Stocks Yielding up to 8.9%

Utility stocks are the OG dividend payers. They’re delightfully dull. They’re dependable. They’re always worth scouting for income—and I’ve got six 5%-plus dividends on deck to share with you today.

I’m pleasantly surprised that we still have a chance to buy utilities for reasonable prices right now. Despite a year’s worth of worries about a pending recession, utilities have been the market’s worst sector year-to-date.

Perfect. We have value!

Utilities have worked off the froth I pointed out a year ago. Let’s just look at the forward P/Es from this year and last.

Sept. 10, 2022: Utilities Forward P/E: 20.9 S&P 500 Forward P/E: 17.7

Sept.… Read more

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This 6%-Yielding Portfolio Is Cheap. But Is It a Value?

Let’s talk about the cheapest dividend payers in the world. With respect to cold hard cash flow.

We contrarians are too savvy for P/E ratios. We know that earnings are accounting creations. “Profits” are all fugayzi.

Free cash flow (FCF), on the other hand, is what it is. The cash a company brings in, minus capital expenditures. This cash can be reinvested in the business or, better yet, paid out to income investors like us.

We like companies that dish dividends because their businesses are running on relative autopilot. They needn’t plow every dollar they raise back in. Which is great—more yield for us.… Read more

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