10 Utility Companies You Can Be "Proud to Own"

 

Proud to Own Process™

 

At Faith-Based Investor we have developed a propriety list of companies our clients can be “Proud to Own”.  Our "Proud to Own" list is a list of companies that meet both our stringent moral and financial criteria.  In order to meet our "Proud to Own" status we narrow nearly 8,000 companies down to a manageable list of about 600 companies.  

 

These 600 companies are thoroughly analyzed to make sure they do not violate any of our clients' moral preferences. Most of our clients want us to screen for Christian Values.  They want to avoid investing in companies that profit from or donate money to the abortion industry.  They also want to avoid supporting companies in the pornography, gambling, tobacco, and alcohol industries.  Many also wish to avoid investing in companies that are lobbying for and actively promoting the homosexual lifestyle.  

 

All in all, there are 13 moral items we screen out of our portfolios.  We then screen in companies that are making a positive difference in our society.  We combine negative along with positive screens to narrow our list from 8,000 down to 600 companies - our "proud to own" investing pool.  This pool is constantly changing as names come and go as moral and financial conditions change. 

 

From this list of approximately 600 companies, we hand select those we feel are the "best of the best".  We sub-divide these companies into 5 categories for our investors:

 

1) Dueling Duo Picks - These are momentum based companies that currently on an upward trend.  Typically many of these companies are near or close to their 52 week highs and have more room to grow...

 

2) All-Weather Companies - These are more defensive picks.  Think stability and consistency.   These are typically in industries that can stand up better during the "down times" yet advance nicely during the "good times".

 

3) Tomorrow's Treasures - These are aggressive growth companies in the smaller and mid-sized range.  We try to hit a few home runs with these picks.

 

4) Contrarian Strategies - These are companies that have typically fallen out of favor with Wall Street for one reason or another.  They have been beaten down in price and have nice rebound potential.  

 

5) Global Income - These are companies from all over the world that are consistent and pay nice dividends (at least 3%).  We look for mature and smaller companies that have a history of raising dividends along with a stable growing stock price.  We want growth and income! 

 

As you can see, we can usually find investments for nearly every type of investor.  Let us help you find investments you can be "proud to own"! 

 

Let us look at the types of companies we select in our global income strategy:

 

In this portfolio, we like high quality, dividend paying companies in stable industries.  We like REITs, consumer staples, health care, energy, and utilities.  We want to include products and services people will buy and use during good and bad economic times.  For dividend investors we really like utilities.  They may be boring, but they pay some hefty dividends!  

 

10 Utilities You Can Be Proud to Own

 

Here are ten utility companies that have met our moral and financial criteria. We look for companies yielding at least 3%.  Please note, not all of these companies are currently in our global income strategy.

 

1. American Electric Power Co, Inc. AEP – Projected yield of 4.9%. American Electric Power is one of the largest regulated utilities in the U.S. AEP's electric utility operating companies provide generation, transmission, and distribution services to more than 5 million retail customers in 11 states.  About 80% of AEP's power is generated using coal. Approximately 55% of AEP's revenue comes from operations in Ohio, Texas, and Virginia.

 

1. Avista Corporation AVA– Projected yield of 4.37%. Avista is a regulated electric and natural gas utility in Washington, Idaho, and Oregon. Roughly half of Avista's generating capacity is hydroelectric, with the rest made up of natural gas, coal, and wood-fired thermal plants. The company's Advantage IQ subsidiary provides utility bill management services.

 

1. Entergy Corp. ETR– Projected yield of 4.81%.  Entergy's six merchant nuclear power plants in prime areas of the Northeast and Midwest were the crown jewels of the diversified utility up until the commodity markets collapsed in late 2008 and power demand fell at record levels during the 2007-08 recession. Now with power markets still languishing in the Northeast and electricity demand rebounding in the industry-heavy Southeast, Entergy's six regulated utilities will be the stars of the next three to five years.

 

1. Southern Company SO            - Projected yield of 4.67%. Southern generates and distributes electricity to more than 4.4 million customers in the Southeast. It owns four electric utilities--in Alabama, Georgia, Florida, and Mississippi--and has more than 42,000 megawatts of generating capacity, the majority of which comes from coal-fired plants. Southern also operates a conservative merchant generation segment, Southern Power. Southern is one of the most widely held stocks in the United States.

 

 

1. NextEra Energy Inc. NEE- Projected yield of 3.75%. NextEra is a leading electricity provider whose regulated segment, FP&L, distributes power to 4.5 million customers in Florida. Consolidated generation capacity, which totals some 42,000 megawatts, includes natural gas and significant wind and nuclear assets. The firm's merchant segment generates and sells power throughout the U.S. More than one third of this segment's generation capacity is wind.

           

1. CPFL Energy SA ADR CPL- Projected yield  of 4.27%. CPFL Energia generates, transmits, and distributes electricity in Brazil. The company serves 6.4 million customers in the states of Sao Paulo and Rio Grande do Sul. In total, the firm holds a 13% share of the national market in power distribution. CPFL has an installed generation capacity of 2,000 megawatts. The commercialization segment procures power for the firm's distribution businesses and sells power to free consumers and other distribution utilities.

 

1. Alliant Energy Corporation LNT– Projected yield of 4.17%.  Alliant Energy provides electricity to just under 1 million customers in the upper Midwest and natural gas to about half as many through its two regulated utility subsidiaries, Interstate Power & Light and Wisconsin Power & Light. The firm also has several non-regulated businesses that account for less than 5% of revenue.

 

1. Huaneng Power International Inc. ADR HNP -Projected yield of 4.74%. Huaneng Power International develops, constructs, operates, and manages power plants in China, with generation capacity of more than 46.5 gigawatts on an equity basis in 17 provinces, municipalities, and regions. It is the largest listed power producer in China. Huaneng International Power Development Corporation has a 42% economic interest in Huaneng Power but controls 70% of voting rights.

 

1. Dominion Resources Inc. D- Projected yield of 4.11%. Dominion is an integrated energy company. Its 26,500-megawatt power plant fleet provides electricity to utility and merchant customers. The company has gas and electric transmission lines and an LNG import terminal. Dominion distributes electricity in Virginia and North Carolina and gas in Ohio. Dominion's natural gas business operates 7,800 miles of pipelines and the largest storage system in the country.
2.  DTE Energy Holding Co. DTE –Projected yield of 4.47%. DTE Energy owns two regulated utilities: Detroit Edison and MichCon. Detroit Edison is the nation's 10th-largest electric utility, supplying energy to 2.1 million customers in southeastern Michigan. MichCon is the nation's 11th-largest natural gas local distribution company and has 1.2 million customers. In addition, DTE has a number of unregulated businesses, including energy marketing and trading, gas transportation and storage, and on-site industrial energy projects.