ED - 3 High-Yield Stocks to Buy in This Boring Sector
2024-05-26 15:27:00 ET
Utilities operate very boring businesses. They distribute electricity and natural gas to customers under government-regulated rate structures. There isn't a lot of upside in this business (demand and rates are relatively steady), but there is also not much downside. Because of that, utilities generate pretty stable returns, a large portion of which comes from their high-yielding dividend payments.
Investors seeking to add more stability to their portfolio should consider buying a boring utility stock . Black Hills (NYSE: BKH) , Consolidated Edison (NYSE: ED) , and Duke Energy (NYSE: DUK) stand out to a few Fool.com contributors as great options for those seeking a high-yielding and sustainable dividend.
Reuben Gregg Brewer (Black Hills): When it comes to utility stocks, Black Hills, with a $3.9 billion market cap, is one that often slips under the radar screen. That's a shame because the regulated natural gas and electric utility is a Dividend King with 54 consecutive years of annual dividend increases behind it. The average dividend increase over the past three-, five-, and 10-year periods are all around 5%, showing incredible consistency. Meanwhile, the yield is currently around 4.5%, which is toward the high end of the yield range over the past decade.
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3 High-Yield Stocks to Buy in This Boring Sector