Two Utilities with 6% Yield and Street Support

There are two utilities that offer a 6% or greater yield and are well liked on the Street. Niska Gas Storage LLC, (NKA) and Unitil Corp (UTL) fit the bill of higher yield and an analyst rating of “buy or better”. Utility investors are usually presented with two basic choices: higher current yield and lower growth or lower current yield and higher growth. Depending on an investors specific circumstance, either may be appropriate. These two fall into the category of higher current yield and lower growth. Niska Gas Storage operates three natural gas storage facilities with total storage capacity of 204 bcf, located in Canada, Northern California and Oklahoma. NKA is the largest independent natural gas storage operator in North America. 51% of revenues forecast for FY March 2011 will come from long-term contracts, 18% from short-term contracts and 30% from “proprietary/optimization”. Growth going forward is expected to favor short-term... Read more

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