Last week I presented a stock that is a conservative way to play the Pharmaceutical industry for the future. Today, I would like to present a rather conservative dividend stock with substantial growth possibilities as well.
Centerpoint Energy is a diversified utilities company that operates in the Southern United States. It has four distinct segments that make this a well diversified investment:
1.) Electric Transmission and Distribution
2.) Natural Gas Distribution
3.) Competitive Natural Gas Sales and Services
4.) Pipelines and Field Services
With a Dividend Yield of 4.4% and Analysts views of second quarter earnings surging when they report on August 3, 2006, this company may be ripe for a buy if one is looking for a solid income stock.
With their financial numbers as they are and Natural gas prices trending higher for a fourth consecutive session as excessively hot temperatures continued to boost demand and are anticipated to continue through to August across most of the U.S. Natural gas for September increased $0.061 to $7.184 per MMBTU gaining 29% in less than 2 weeks and is expected to continue its upward trend as market speculators increased their net long positions by as much as 49% on the week. The front-month contract strengthened overnight and is trading higher to $7.55 per MMBTU in the London session. We can also look to the solid dividend and increasing distribution revenues for both Natural Gas and Electricity to lift the value of this investment.
*Note: Please due your own due diligence before investing.