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High-Yield Nat Gas Stock With Strong Roots - 17405 views
This stock has been around for a long, long time. It is the eighth-oldest-listed stock on the New York Stock Exchange, has traded on the exchange for 121 years, was one of the original stocks in the Dow Jones Industrial Average in 1896, has increased its dividend for the last seven years, and was founded in 1857, more than a century and a half ago. On top of that, the company just boosted its quarterly dividend by 2.5% to 40.5 cents per share, providing a very favorable yield of 4.6%.
The stock, Laclede Group (LG), formerly known as Laclede Gas Company, is a natural gas utility that provides natural gas service to about 630,000 residential, commercial and industrial customers in Missouri. It trades at 13.5 times forward earnings and has an operating cash flow of about three times its total dividend payout. The company has increased its dividend every year since 2003.
Laclede recently reported net income for its fiscal year ended Sept. 30 at $2.43 diluted earnings per share, the third-highest in the company's history. For the fourth fiscal quarter of 2010, the company narrowed its loss to 7 cents per share from 22 cents per share for the same quarter last year. Quarterly earnings rose 12.7% year over year.
There are many other high-yield natural gas and propane gas utilities. WallStreetNewsNetwork.com has updated its list of 25 gas utilities with yields ranging up to 7.5%, which includes Nicor (GAS), yielding 4.2%; Spectra Energy (SE), yielding 4.2%; and Chesapeake Utilities (CPK), yielding 3.5%.
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.