Aqua America Inc (WTR), The Southern Company (SO): “Turn On” These Utilities For Steady Income

Gas

National Fuel Gas Co. (NYSE:NFG) is a utility located in the New York State-Pennsylvania region that operates in the utility, production, storage, and exploration of natural gas. Its dividend has increased for 43 consecutive years. It has grown its dividend at 3.5% annually over the last 10 years while consuming only 51% of its earnings and yielding 2.5% based on current stock prices.

National Fuel Gas Co. (NYSE:NFG) is a bit unique, as it operates multiple business segments instead of a sole utility provider. Its exploration and production segments account for about half of its net income. It has potential to grow its supply with 745,000 acres of shale that remains mostly untapped.

Its annual report shows a “mixed bag”. Earnings have decreased from last year. This is largely due to a decrease in natural gas prices, as well as warmer weather decreasing consumption of gas in the utility sector. National Fuel is more than a utility. It is an energy company that participates in all segments of the natural gas business. Due to this, earnings can fluctuate some due to commodity prices, as well as capital requirements for exploration and production. You have to expect this when investing in National Fuel.

Bottom line

Each of these companies provide stable and increasing portfolio income through different means. Whether it be Aqua America Inc (NYSE:WTR) through acquisitions, The Southern Company (NYSE:SO) through operational efficiency, or National Fuel through segment diversification – all are good starting points for adding the steady income of utilities to your portfolio.

The article “Turn On” These Utilities For Steady Income originally appeared on Fool.com and is written by Justin Pope.

Justin Pope has no position in any stocks mentioned. The Motley Fool recommends Aqua America and Southern Company. Justin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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