Which Of The Russell 3000 Utility Companies Is Most Attractive To Dividend Investors?

Almost all the utility companies pay dividends. Among the 85 utility companies that are included in the Russell 3000 index, 83 companies pay dividends. The average annual dividend yield of these companies is 3.90% while the median is 3.74%. Ferrellgas Partners LP (FGP) has the highest yield at 9.10%, and AES Corporation (AES) has the lowest yield at 1.31%. In this article, I tried to determine which of the Russell 3000 utility companies is the most attractive for dividend-seeking investors. I consider that besides healthy dividend yield, low payout ratio and consistent dividend growth are the most crucial factors for dividend-seeking investors. In addition, since dividend investors try to avoid too much risk, The Sharpe ratio, which measures the ratio of reward to risk, is also extremely important. I have screened the Russell 3000 utility companies that pay dividends according the above-mentioned principles. The screen's method requires all stocks to... Read more