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10 Large Cap Dividend Utilities with Highest Expected EPS Growth

A sector with high dividends and reliability dividend payments is the utility sector. If you look into this sector, you can find only 121 companies which have a summarized market capitalization of USD21.89 billion. The average P/E of the sector amounts to 15.36 and the dividend yield is around 4.34 percent.

Utilities are often ex-growth and loaded with huge amounts of debt. There is very capital intensive and growth needs huge cash. I made a screen of the fastest growing stocks in terms of earnings per share over the mid-term (next five years). In addition I observed only those companies with a market capitalization over USD10 billion and a positive dividend yield. Exactly 10 companies remained of which four are currently recommended to buy.

These are my favorite stocks:

The Southern Company (SO) has a market capitalization of $37.45 billion. The company generates revenue of $17.657 billion and has a net income of $2.268 billion. The firm’s EBITDA amounts to $5.948 billion. The EBITDA margin is 33.69% (operating margin 23.96% and net profit margin 12.84%).

The total debt represents 35.81% of the company’s assets and the total debt in relation to the equity amounts to 113.74%. Last fiscal year, a return on equity of 13.04% was realized. Twelve trailing months earnings per share reached a value of $2.54. Last fiscal year, the company paid $1.87 in form of dividends to shareholders. The earnings per share are expected to grow by 5.28 percent for the next five years.

Here are the price ratios of the company: The P/E ratio is 16.83, Price/Sales 2.11 and Price/Book ratio 2.11. Dividend Yield: 4.58%. The beta ratio is 0.27.

TransCanada (TRP) has a market capitalization of $31.53 billion. The company generates revenue of $9.171 billion and has a net income of $1.717 billion. The firm’s EBITDA amounts to $4.823 billion. The EBITDA margin is 52.60% (operating margin 35.24% and net profit margin 18.72%).

The total debt represents 45.47% of the company’s assets and the total debt in relation to the equity amounts to 128.60%. Last fiscal year, a return on equity of 9.66% was realized. Twelve trailing months earnings per share reached a value of $1.96. Last fiscal year, the company paid $1.69 in form of dividends to shareholders. The earnings per share are expected to grow by 7.40 percent for the next five years.

Here are the price ratios of the company: The P/E ratio is 22.83, Price/Sales 3.43 and Price/Book ratio 1.94. Dividend Yield: 3.94%. The beta ratio is 0.72.

Sempra Energy (SRE) has a market capitalization of $16.19 billion. The company generates revenue of $10.036 billion and has a net income of $1.355 billion. The firm’s EBITDA amounts to $2.722 billion. The EBITDA margin is 27.12% (operating margin 17.38% and net profit margin 13.50%).

The total debt represents 32.57% of the company’s assets and the total debt in relation to the equity amounts to 110.19%. Last fiscal year, a return on equity of 14.39% was realized. Twelve trailing months earnings per share reached a value of $3.52. Last fiscal year, the company paid $1.92 in form of dividends to shareholders. The earnings per share are expected to grow by 6.50 percent for the next five years.

Here are the price ratios of the company: The P/E ratio is 19.04, Price/Sales 1.61 and Price/Book ratio 1.63. Dividend Yield: 3.58%. The beta ratio is 0.50.

Take a closer look at the full table of the best growth utilities. The average P/E ratio amounts to 19.04 and forward P/E ratio is 15.11. The dividend yield has a value of 3.91 percent. Price to book ratio is 1.83 and price to sales ratio 1.87. The operating margin amounts to 21.50 percent. The average stock has a debt to equity ratio of 1.60.

Related stock ticker symbols:TRP, ENI, SRE, CPL, NU, NEE, D, PEG, SO, HNP

Selected Articles:· 12 Best Dividend Paying Utilities To Consider

· The Best Yielding Diversified Utilities

· 12 Fast Growing Utilities With A Dividend Yield Above 3 Percent

· 11 Water Utilities With Best Dividend Yield

Utilities with Highest Growth Forecasts and Positive Dividend Payments Researched by "long-term-investments.blogspot.com."

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


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