The Best Utilities For Dividends, Part 2

As discussed in my previous article, there are a wide range of utility stocks, as defined by Zacks.com, with many of them providing attractive dividend yields. However, simply chasing a dividend yield can be a costly proposition if that stock is not also fairly valued or is even undervalued. As also noted in the previous article, Zacks.com excludes some companies and groups that one might intuitively expect to be included in this analysis. Methods to Compare Dividend Paying Stocks The easiest way to compare dividend paying stocks is the simple consideration of yield. Essentially for a certain amount of principal, what is the most current income that can be generated. The very simple approach is very easy to explain and for a novice investor might even make sense. However, the first nuance is that dividends change over time. Some companies have a very strong track record of raising their... Read more