For investors, monopolies are ideal and this has been true for Dividend.com’s Best Dividend Stocks List’s regional utility pick. Thanks to its wide moat and total dominance in a strong and growing region in the country, our pick has continued to deliver on the gains, profits and dividend front since adding it to our list only a few months ago.
This was the second time we added the regional utility to our coveted list. Previously, we highlighted the firm’s unique generation portfolio of hydroelectric assets as well as its stable dividend profile. But bear in mind, the stock wasn’t removed because of any issues; it was simply a rules-based tie-breaker due to market-cap size. The stock has long scored high in our DARS model, and we’ve been bullish on it for over a year.
See the original article on our pick here.
And more could be in store for investors. Thanks to political and economic issues, the market has recently stumbled. This has continued to push investors into defensive sectors, such as utilities. When you add this fact to our pick’s strong operating metrics and portfolio of generating assets, you have a recipe for continued success over the long term.
To summarize, here are five reasons why you should own this stock:
- Operating monopoly in one of the fastest-growing states in the Midwest.
- Has paid a dividend every quarter since 1943 and has grown its payout 83% over the last decade.
- Mega-winner from the shift to renewable energy generation.
- Has plenty of non-regulated, non-utility businesses to add extra profit boosts.
- Low payout ratio of 55% and a healthy growing yield of 2.46%.
