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Meanwhile, utility dividends, after a decade in which many companies cut payouts in response to Wall Street pressure to transform themselves into vehicles for rapid growth, seem relatively secure again.
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To Eaton Vance's Judith Saryan, utilities' high dividends bode well for their stocks' future, even though the sector has run up a lot.
The Utility with Dividend Growth of 330%: This company gets 99% of its profits from regulated operations, which means it's protected even if energy prices fall again.
Verizon's sturdy, utility-like dividend yield of 6.1% remains alluring.
"It was expected that the utilities would resume dividends once reactors are restarted, but that prospect has dimmed".
Q. Do you prefer traditional utilities, which pay dividends, or independent producers, which don't pay dividends but grow faster? A. At this juncture, dividends feel better.
Conversely, even with dividends, utilities were underwater by nearly 30percentt in 2008, a year of frantic Fed rate cutting and a halving of benchmark rates.
It's gone up from $22.50 to a recent $30. (To help income-dependent shareholders, utilities could pay dividends in shares and offer to sell them on the market for little or no commission. This would save the company cash).
It has gone up from $22.50 to a recent $30. (To help income-dependent shareholders, utilities could pay dividends in shares and offer to sell them on the market for little or no commission. This would save the company cash).
High-dividend utility stocks rose nearly 1%.
It is also drafting a bill that would ban utility companies from paying dividends to shareholders.
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CEO of Professional Science Editing for Scientists @ prosciediting.com