Utilities have long been safe ports during many of the market’s worst storms. Driving that safety has been their steady nature and relatively recession-resilient earnings stream.
And our best dividend stock regional utility pick is no different. Thanks to monopoly status in its operating region, our pick has long since been a great choice to find solid and reliable dividends. That’s evident by our pick’s 7.27% increase to its payment last month.
See the original article on our pick here.
But the best days for our pick could be in the months ahead. Thanks to falling temperatures and better economic growth, electricity demand is starting to rise. This should help our utility, given its region’s rich manufacturing environment. Not to mention the average sub-zero temperatures. Meanwhile, its non-regulated assets, such as housing projects and other real estate investments, have begun to power forward on better economic conditions for workers. With the help of these growth drivers, our regional utility has the goods to keep your portfolio’s lights on and its dividend’s running.
To summarize, here are five reasons why you should own this stock:
- Operating monopoly in one of the fastest-growing states in the Midwest.
- Paid a dividend every quarter since 1943 and continues to increase that payout. Last jump was 7.27% in November.
- Mega-winner from the shift to renewable energy generation.
- Plenty of non-regulated, non-utility businesses to add extra profit boosts.
- Low payout ratio of 57% and growing yield of 2.40%.
