Yet another update from Seeking Alpha. This article identifies 5 stocks with high yields and low beta (volatility). These stocks are definitely worth some research, maybe we can find some with good dividend growth potential.
Here are the 5 stocks:
Unitil Corp. (UTL) engage in the retail distribution of electricity in the southeastern seacoast and capital city areas of New Hampshire. It also distributes electricity and natural gas in the greater Fitchburg area of north central Massachusetts.
YIELD : 5.7%, Beta: 0.32
First Commonwealth Financial Corp. (FCF) operates as the holding company for First Commonwealth Bank (FCB), which offers various financial services and retail banking services in western and central Pennsylvania.
YIELD : 5.25%, Beta: 0.74
Bassett Furniture Industries Inc. (BSET) engages in the manufacture, marketing, and retail of branded home furnishings in the United States, Canada, and internationally.
YIELD : 5.00%, Beta: 1.39
Duquesne Light Holdings Inc. (DQE) through its subsidiary, Duquesne Light Company, engages in the supply, transmission, and distribution of electric energy.
YIELD : 5.10%, Beta: 1.21
Consolidated Edison Inc. (ED) through its subsidiaries, provides energy-related products and services to its customers in the United States.
YIELD : 4.95%, Beta: .30
As you can see, several of these stocks have very high yields. This could indicate that the stock is currently value priced or that the market perceives higher risk in the stock and its dividend.
Research into a stock’s average yield and dividend payout ratio would give us a better indication of the situation.
Do you hold any of these stocks?