Stock Quotes in this Article: DPL, EIX, OGE

 SAN FRANCISCO (Stockerblog) -- There are many factors affecting the revenues and earnings of electric utilities: the sway of the Public Utilities Commissions, the source of fuel to run the generators along with the cost of the fuel, the efficiency of the organization, growth in the area served from both commercial and residential (don't see much of that lately), and many more.

A simple way for investors to find electric utility stocks that are successful with many of these issues is to check and see if the companies have increased their dividend.


More From Stockpickr

  • Two High-Yield Chocolate Dividend Stocks
  • Stocks to Lead the Market in 2011
  • Rocket Stocks for the Week
  • ----------------------------------------------------------

    One example is OGE Energy (OGE), which pays one of the lowest yields of the top 30 electric utilities at 3.3% but has been increasing its dividend over time, providing annual increases since 2006. The company announced this month that it is increasing its annual dividend to $1.50 per share from $1.45 per share, effective the first quarter of 2011. OGE, which provides electricity in Oklahoma and western Arkansas, trades at 15 times forward earnings.

    DPL (DPL) is another utility with a rising track record, increasing the quarterly dividend from 30.25 cents to 33.25 cents per common share this month, giving the stock a great CD-beating yield of 4.6%. Dividends have risen every year since 2003. The stock has a forward price-to-earnings ratio of 10.8.

    Edison International (EIX) also announced an increase in the annual dividend, from $1.26 per share to $1.28 per share. Dividends have been boosted since 2004. The stock trades at 12.8 times forward earnings and pays a yield of 3.3%.

    For a free spreadsheed of the top-yielding electric utility stocks, which can be downloaded, sorted, and updated, visit

    At the time of publication, author had no positions in stocks mentioned.

    Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management firm, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.