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. Therefore, these companies provide a strong reliable stream of constant income which is a great diversifier during economic downturns. If you’re a buy-and-hold investor, these healthy dividend stocks in the utilities industry can generously contribute to your monthly portfolio income.
Northland Power Inc. (TSX:NPI)
NPI has an appealing dividend yield of 5.03% and is paying out 70.50% of profits as dividends , with analysts expecting the payout ratio in three years to be 90.36%. NPI’s dividends have seen an increase over the past 10 years, with payments increasing from $1.08 to $1.2 in that time. They have been dependable too, not missing a single payment in this time.
ATCO Ltd. (TSX:ACO.X)
ACO.X has a good dividend yield of 2.86% and the company currently pays out 49.81% of its profits as dividends . In the case of ACO.X, they have increased their dividend per share from $0.44 to $1.31 so in the past 10 years. To the enjoyment of shareholders, the company hasn’t missed a payment during this period.
Emera Incorporated (TSX:EMA)
EMA has an appealing dividend yield of 4.70% and the company has a payout ratio of 78.02% , and analysts are expecting the payout ratio in three years to hit 79.36%. EMA’s dividends have seen an increase over the past 10 years, with payments increasing from $0.91 to $2.26 in that time. They have been consistent too, not missing a payment during this 10 year period.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.