Dividends4Life: High Yield Utility Dividend Stocks

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High Yield Utility Dividend Stocks

Posted by D4L | Wednesday, July 07, 2010 | | 0 comments »

With all the market volatility of the base few weeks, investors can be forgiven for seeking safety in investments like high yield dividend stocks. Assets like Treasury bonds and gold have done well. From its April highs, the S&P 500 is down more than 12%. In comparison, the Gold Trust ETF (GLD) is up +11%. And the Direxion 30 Year Treasury Bull 3x (TMF), which returns three times the daily return of 30 Year Treasury Bonds, has gained +47%.

No worries. There are opportunities to be had in defensive utility stocks that offer attractive dividend yields at current levels. Here are a few examples of large, stable utilities offering dividends well in excess of the 3% you get on 10-year Treasury bonds: Pepco Holdings (POM) with a 6.8% yield, First Energy (FE) with a 6.1% yield, and Duke Energy (DUK) with a 6% yield. There was actually a Duke Energy dividend increase just this week.

Source: InvestorPlace.com

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