In this article, we discuss 5 utility dividend stocks with high yields. If you want to read about some more utility stocks with high yields, go directly to 10 Utility Dividend Stocks with High Yields.
5. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 22
Dividend Yield as of May 16: 3.31%
Consolidated Edison, Inc. (NYSE:ED) has stakes in the electric, gas, and steam delivery businesses. The company posted earnings for the first quarter of 2022 on May 5, reporting a revenue of $4 billion, up over 10% compared to the revenue over the same period last year and beating analyst expectations by $350 million. The firm also reaffirmed previous guidance on earnings per share for 2022, saying it expected EPS to range from $4.40 to $4.60 per share against consensus estimates of $4.49.
On April 25, Credit Suisse analyst Nicholas Campanella initiated coverage of Consolidated Edison, Inc. (NYSE:ED) stock with a Neutral rating and a price target of $100, underlining that the stock was “fairly valued” given growth numbers of gas customers in the New York area.
At the end of the fourth quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $323 million in Consolidated Edison, Inc. (NYSE:ED), compared to 24 in the preceding quarter worth $364 million.
4. Pinnacle West Capital Corporation (NYSE:PNW)
Number of Hedge Fund Holders: 30
Dividend Yield as of May 16: 4.64%
Pinnacle West Capital Corporation (NYSE:PNW) provides retail and wholesale electric services. The firm has an impressive dividend history stretching back close to three decades. In the past ten years, the payouts have registered consistent growth. The sector median in this regard is just seven years. On April 20, the firm declared a quarterly dividend of $0.85 per share, in line with previous. In earnings results for the first quarter of 2022, the company beat market expectations on revenue by over $90 million.
On April 4, RBC Capital analyst Shelby Tucker maintained a Sector Perform rating on Pinnacle West Capital Corporation (NYSE:PNW) stock and raised the price target to $80 from 76, noting that the firm was making “incremental progress” to come back from the rate case disappointments of 2021.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Pinnacle West Capital Corporation (NYSE:PNW), with 707,064 shares worth more than $49 million.
3. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 31
Dividend Yield as of May 16: 3.70%
UGI Corporation (NYSE:UGI) markets energy-related products and services. The company posted earnings for the second fiscal quarter of 2022 on May 4, reporting earnings per share of $1.91, beating estimates by $0.07. The revenue over the period was $3.4 billion, up 34% year-on-year and beating estimates by $620 million. The firm also declared a quarterly dividend of $0.36 per share on May 4, an increase of 4.3% from the previous dividend of $0.345 per share. The dividend is payable to shareholders by mid-June.
On March 22, Barclays analyst Christine Cho maintained an Equal Weight rating on UGI Corporation (NYSE:UGI) stock with a price target of $40, predicting that gas prices would moderate in the coming months and recoup margin headwinds in the sector.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder in UGI Corporation (NYSE:UGI), with 8.6 million shares worth more than $396 million.
2. Dominion Energy, Inc. (NYSE:D)
Number of Hedge Fund Holders: 34
Dividend Yield as of May 16: 3.19%
Dominion Energy, Inc. (NYSE:D) produces and distributes energy. On March 16, the company announced that the Virginia State Corporation Commission had granted it permission to expand solar and energy storage projects in the state for utility customers. According to the firm, the expansion plans extend to a total of 15 projects in the state. The projects will be completed in 2022 and 2023 and will add an average of $1.13 to the monthly bill of the typical residential customer in the region.
In late January, Barclays analyst Eric Beaumont reinstated coverage of Dominion Energy, Inc. (NYSE:D) stock with an Equal Weight rating and a price target of $86, noting that the firm had “exceptional visibility” in long-term capital deployment opportunities.
Among the hedge funds being tracked by Insider Monkey, Ohio-based investment firm Diamond Hill Capital is a leading shareholder in Dominion Energy, Inc. (NYSE:D), with 3.6 million shares worth more than $284 million.
1. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 36
Dividend Yield as of May 16: 3.60%
Duke Energy Corporation (NYSE:DUK) is a North Carolina-based energy company. On May 11, the company announced that it had won an auction for two leases to develop wind power projects at a site in federal waters. The bids, won in partnership with TotalEnergies, equal $315 million, with Duke paying $155 million. The projects are part of a larger plan by US President Biden to push 30 GW of offshore wind power by 2030. The firm is also working on another offshore wind project that will power nearly 375,000 homes in the Wilmington area.
On May 10, Wells Fargo analyst Neil Kalton maintained an Equal Weight rating on Duke Energy Corporation (NYSE:DUK) stock and raised the price target to $120 from $109, highlighting the “improving regulatory backdrop and substantial energy transition opportunities post 2025”.
At the end of the fourth quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in Duke Energy Corporation (NYSE:DUK), up from 32 in the preceding quarter worth $687 million.
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