Friday, September 19, 2014

Electric Utilities Are Promoting Electric Cars: Get Plugged in to These Utility Stocks

The electric car industry has a very, very powerful ally behind it, the electric utility industry. Although electric utility revenues have not been booming, utility companies have been looking at a potentially huge source of income, the sale of electricity to electric car owners at recharging stations.

Sempra Energy (SRE) plans to set up over 5,000 electric-car chargers throughout San Diego at places such as apartment buildings and office complexes. However, consumers are upset about the billing surcharges to pay for the charging stations. Sempra trades at 25 times trailing earnings and 22 times forward earnings.

Quarterly earnings for Sempra rose 9.8% year over year on a 1.0% increase in revenues. The company pays a yield of 2.7% and the payout rate was raised earlier this year from 63 cents per share to 66 cents per share, an increase of 4.7%. Dividend payouts of $648.6 million per year is easily covered by the company's operating cash flow of $1.71 billion.

Portland General Electric (POR) is another electric utility that pays a decent yield, giving investors a payout of 3.5%. Dividends were increased this year by one cent per share. The stock has a trailing rice to earnings ratio of 22.9 and forward PE of 14.7. Revenues rose 5.0% for the latest quarter.

NRG Energy Inc. (NRG) has re-charging stations at various stores in California, Texas and Washington, D.C. The stock yields 1.8% with a forward PE of 18.

For a free list of electric utilities, which includes information on the PE, the forward PE, the PEG, and the yield, go to WallStreetNewsNetwork.com. Maybe some of these stocks can charge up your portfolio.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

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