6 High Yield Large Cap Energy Utilities: Recent Performance and Dividend Growth Analysis

Before those pension funds, widows and orphans all got sophisticated and started to swap debt obligations, these long-term investment groups were primarily associated with utility investments. Utilities are purveyors of necessities, and usually at a government regulated price and restricted competition. Due to the government regulated pricing and distribution of utilities, they are considered generally reliable and predicable businesses, though issues such as the recent renewed concern over nuclear power can occur. Nonetheless, the regulated nature of their businesses tends to make utility dividends reasonably secure, though this security means that the dividends are unlikely to grow at a rapid pace. Utilities are also generally far less volatile than the market, and the demand for utilities only increases over time as technology advances into new realms and the population continues to grow. I identified the six largest energy utilities within in the S&P 500 that have a yield of over 4%. The following is an analysis of their dividends over the last 5 years, as well as their present yield and 2011 performance, to date:... Read more