These Three Companies Keep Powering On! Entergy Corporation (ETR) and More

Will Duke stand the test of time and present an interesting investment? Let’s take a look at the metrics. A quick look at earnings shows some incredibly stable EPS numbers that show some signs of small growth over the coming years. The five year EPS growth is -0.1%, but the three year is considerably better at 11.5%. Revenues over those same three years have grown a nice 8.55%.

With the steady growth and the overall stability of Duke we see higher price ratios. The P/E ratio at Duke is 21.6 and price to tangible book is sitting at 1.98. The dividend is at 4.45%, though, which could be enough for me to add this company to my portfolio.

NextEra Energy, like Duke, has around 4 million customers on their books. NextEra’s customers are spread across the United States and are located in three of Canada’s provinces.  In terms of EPS growth the $30.5 billion NextEra looks better than both Entergy and Duke. Five year EPS growth is at 6.49%, but revenues over that same time period have been sinking at a rate of -1.6%. NextEra is expected to grow earnings over the next two years, another plus for the company.

The pricing metrics at NextEra are lower than those at Duke. NextEra’s P/E ratio is at 15.8, below the industry average 17.1, and the company is also trading at 1.92 times tangible book. A 3.3% dividend yield is offered by NextEra, and that dividend has been growing year-over-year.

Bottom Line

I like all three companies for a long-term hold. All three provide an immense level of stability and all three pay an exceptional dividend.

If you are looking for a good dividend you’d be better off buying Entergy over Duke and NextEra–but for overall stability, dividend, and potential I would go with Duke.

Duke is the biggest of the three companies, it pays a massive dividend, and the EPS numbers are incredibly stable. The P/E may be too much for some to handle, but if it doesn’t scare you away, I say go for it!

The article These Three Companies Keep Powering On! originally appeared on Fool.com and is written by Ash Anderson.

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