Generally, companies in the utilities sector, such as OPG Power Ventures and Jersey Electricity, often provide attractive dividend yields due to relatively stable earnings as these are considered defensive sectors that can make money in any economic environment. These businesses, therefore, generate robust cash flows and payout high income to shareholders, making them valuable diversifiers during downturns. As a long term investor, I favour these utilities stocks with great dividend payments that continues to add value to my portfolio.
OPG Power Ventures PLC (AIM:OPG)
OPG has a great dividend yield of 5.92% and the company has a payout ratio of 25.06% . The company’s 5.92% dividend is both above the low risk savings rate and among the markets top payers. The company has a lower PE ratio than the Europe Electric Utilities industry, which interested investors would be happy to see. The company’s PE is currently 5.8 while the industry is sitting higher at 12.2. More on OPG Power Ventures here.
Jersey Electricity plc (LSE:JEL)
JEL has a nice dividend yield of 3.74% and is distributing 49.31% of earnings as dividends . JEL’s last dividend payment was UK£0.18, up from it’s payment 10 years ago of UK£0.074. Much to the delight of shareholders, the company has not missed a payment during this time. The company has performed strongly in the last 5 years, growing its earnings by 13.61% in this time. More detail on Jersey Electricity here.
Telecom Plus PLC (LSE:TEP)
TEP has a juicy dividend yield of 4.54% and distributes 125.59% of its earnings to shareholders as dividends . TEP’s last dividend payment was UK£0.50, up from it’s payment 10 years ago of UK£0.14. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. More detail on Telecom Plus here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.