In this article, we discuss 5 utility dividend stocks with over 3% yield. If you want to check out some other utility dividend stocks with over 3% yield, go directly to 10 Utility Dividend Stocks with Over 3% Yield.
5. Consolidated Edison, Inc. (NYSE:ED)
Number of Hedge Fund Holders: 22
Forward Dividend Yield: 3.22%
Consolidated Edison, Inc. (NYSE:ED) has stakes in the electric, gas, and steam delivery businesses. The company has one of the most solid track records in the dividend space. For the past 47 years, it has paid a growing payout to shareholders. The industry median in this regard is just seven years. Continuing on this impressive trajectory, the company declared a quarterly dividend of $0.79 per share on April 21, in line with previous. The payout will be dispatched to shareholders of note by late May.
On March 10, Mizuho analyst Anthony Crowdell kept a ‘Buy’ rating on Consolidated Edison, Inc. (NYSE:ED) and raised his price target on it to $94 from $90, noting that a sale of its clean energy business would help the firm minimize equity needs in the coming years.
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 funds long ED in the preceding quarter with positions valued at $364 million.
4. Pinnacle West Capital Corporation (NYSE:PNW)
Number of Hedge Fund Holders: 30
Forward Dividend Yield: 4.40%
Pinnacle West Capital Corporation (NYSE:PNW) provides retail and wholesale electric services. On February 25, the firm posted its results for the fourth quarter of 2021, reporting earnings per share of $0.24, beating estimates by $0.21. Revenue over the period was $798 million, up nearly 8% year-on-year and beating expectations by $139 million. In its guidance for the 2022 fiscal year, the firm said it expects consolidated earnings to be around $4.10 per share against consensus estimates of $3.96 per share.
Pinnacle West has a 28-year run of making dividend payments and a ten-year streak of annual dividend increases. On April 4, RBC Capital analyst Shelby Tucker maintained a ‘Sector Perform’ rating on Pinnacle West Capital Corporation (NYSE:PNW) and raised the firm’s price target on it to $80 from $76, noting that the fundamental setup for the firm in Arizona remained attractive with strong customer growth.
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
Forward Dividend Yield: 3.77%
UGI Corporation (NYSE:UGI) markets energy-related products and services. In early January, the company announced that it agreed to purchase the Stonehenge Appalachia midstream natural gas gathering system from Stonehenge Energy Holdings in a deal worth $190 million. The system includes 47 miles of pipeline and associated compression assets and has a capacity of 130M cf/day. The firm expects stable revenue from the system that is already under a long-term contract.
UGI has raised its annual dividend payouts for 18 consecutive years. On March 22, Barclays analyst Christine Cho maintained an ‘Equal Weight’ rating on UGI Corporation (NYSE:UGI) with a price target of $40, noting that tail risks in energy marketing could sustain for the near-term.
Among the hedge funds 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
Forward Dividend Yield: 3.07%
Dominion Energy, Inc. (NYSE:D) produces and distributes energy. The firm recently obtained the approval of state and federal authorities for the expansion of new solar and energy storage projects in Virginia. The expansion is part of the company’s long-term plan to reduce its greenhouse gas emissions while meeting the energy needs of the customers. The expansion plan includes 15 projects in the region that will provide 1,000 MW of carbon-free electricity. That power will meet the needs of over 250,000 homes in Virginia.
Dominion was forced to slash its dividend by 33% in late 2020, but raised it slightly earlier this year. 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 tracked by Insider Monkey’s database, 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
Forward Dividend Yield: 3.44%
Duke Energy Corporation (NYSE:DUK) is a North Carolina-based energy company. New filings from the company show that it has entered into an amended credit agreement that has boosted the credit line of the firm to $9 billion from $8 billion. The termination date of the agreement has also been expanded from March 2025 to March 2027. As of mid-March, the firm had nearly $6.35 billion available for borrowing under the agreement. The company has an impressive dividend history with 11 consecutive years of growing payouts.
On April 7, KeyBanc analyst Sophie Karp kept an ‘Overweight’ rating on Duke Energy Corporation (NYSE:DUK) and raised her price target on it to $119 from $110, noting the firm was “well positioned” as a core utility investment.
At the end of the fourth quarter of 2021, 36 hedge funds tracked by the database of Insider Monkey held stakes worth $1.1 billion in Duke Energy Corporation (NYSE:DUK), up from 32 funds in the preceding quarter with $687 million in holdings.
For more intriguing dividend stock picks, check out 10 Russell 2000 Basic Materials Dividend Stocks to Buy and 10 Utilities Stocks with Over 3% Dividend Yield.
