Regulators typically set customer rates for utilities to ensure investors recover a fair return on capital and allows the businesses keep their systems well maintained. This means utilities companies are among the most defensive investments with solid cash flows and high dividend payouts. These businesses, therefore, generate robust cash flows and payout high income to shareholders, making them valuable diversifiers during downturns. Today I will share with you my list of high-dividend utilities stocks you should consider for your portfolio.
APA Group (ASX:APA)
APA has a enticing dividend yield of 5.29% with a large payout ratio . Over the past 10 years, APA has increased its dividends from $0.28 to $0.435. They have been dependable too, not missing a single payment in this time. APA Group’s future earnings growth looks strong, with analysts expecting 50.89% EPS growth in the next three years. More on APA Group here.
AGL Energy Limited (ASX:AGL)
AGL has a large dividend yield of 4.07% and is currently distributing 113.00% of profits to shareholders . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.355 to $1. They have been consistent too, not missing a payment during this 10 year period. Analysts are expecting an impressive triple digit earnings growth over the next three years. Dig deeper into AGL Energy here.
Telstra Corporation Limited (ASX:TLS)
TLS has a sumptuous dividend yield of 8.27% and is distributing 95.35% of earnings as dividends . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.28 to $0.31. The company has been a dependable payer too, not missing a payment in this 10 year period. Telstra is also reasonably priced, with a PE ratio of 11.5 that compares favorably with the AU Diversified Telecommunication Services average of 19.4. More on Telstra here.For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.