It's nice to find stocks from the more 'conservative' sectors of the market that behave like growth stocks, offering double digit returns while at the same time rewarding shareholders with solid yields. The latest pullback has brought a number of such stocks into sharp focus. Below we present them with their fundamental criteria.

IN PICTURES: 4 Biggest Investor Errors

Master Infrastructure Investors
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a Master Limited Partnership that sports a dividend yield of 6.6% and trades with a P/E of just 10.65. In the last year, the stock tacked on nearly 40%, largely pushed by the growth of government infrastructure spending globally. That beat the S&P 500, as represented by the SPDR S&P 500 ETF (NYSE:SPY), which returned 21% over that period. BIP slightly underperformed the JPMorgan Alerian MLP Index ETN (NYSE:AMJ), which gained 43%.

Brookfield is an owner/operator of a wide range of international infrastructure properties. Most recently the company jumped into the Australian and U.K. markets, taking over port, pipeline and railway assets in those two nations. Brookfield's shares currently trade at less than breakup value, with a price to book ratio of 0.94. (Are all the ratios making you see red? Check out Investopedia Video for easy-to-understand explanations of P/E Ratio, CAGR and much more)

Profits, Western (and Eastern) Style
Black Hills Corporation (NYSE:BKH) is a garden variety energy utility serving customers in Iowa, Nebraska, Colorado and Kansas. Where it departs from the norm is in the gains it has accrued in the last year. BKH stock is up 28.5% in the last twelve months and still pays a 4.8% dividend. The shares change hands at a multiple of 13.7 times last year's earnings and 1.03 times book value.

Consolidated Edison, Inc. (NYSE:ED) is one of the country's oldest gas and electricity marketers, serving 3.3 million customers in the Greater New York area. The company's stock pays a nice 5.2% annual dividend and trades with a P/E of 13.71. In the last year the shares have gained more than 21%.

Price to book on the shares is 1.12 and price to sales a competitive 0.97. The company's latest earnings report produced 80 cents a share profit, beating last year's 66 cents for the same period.

The Wrap
Surprisingly, some of the best market performers over both the last few months and the last year have hailed from the most conservative quarters of the market. That's likely a comment both on the strength of the companies mentioned and on the prevailing mood of the investing public. By and large, they're avoiding risk. (Rather than following the hot stocks, build a dividend-rich portfolio. For further reading, see Monster Dividends.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    The Top 5 Large Cap Core ETFs for 2016 (VUG, SPLV)

    Look out for these five ETFs in 2016, and learn why investors should closely watch how the Federal Reserve moves heading into the new year.
  2. Economics

    India: Why it Might Pay to Be Bullish Right Now

    Many investors are bullish on India for all the right reasons. Does it present an investing opportunity?
  3. Stock Analysis

    Analyzing Altria's Return on Equity (ROE) (MO)

    Learn about Altria Group's return on equity (ROE) and analyze net profit margin, asset turnover and financial leverage to determine what is causing its high ROE.
  4. Investing Basics

    Building My Portfolio with BlackRock ETFs and Mutual Funds (ITOT, IXUS)

    Find out how to construct the ideal investment portfolio utilizing BlackRock's tools, resources and its popular low-cost exchange-traded funds (ETFs).
  5. Investing News

    Icahn's Bet on Cheniere Energy: Should You Follow?

    Investing legend Carl Icahn continues to lose money on Cheniere Energy, but he's increasing his stake. Should you follow his lead?
  6. Stock Analysis

    Analyzing Google's Return on Equity (ROE) (GOOGL)

    Learn about Alphabet's return on equity. How has its ROE changed over time, how does it compare to its peers and what factors are driving ROE for the company?
  7. Investing News

    Is Buffett's Bet on Oil Right for You? (XOM, PSX)

    Oil stocks are getting trounced, but Warren Buffett still likes one of them. Should you follow the leader?
  8. Investing

    3 Things About International Investing and Currency

    As world monetary policy continues to diverge rocking bottom on interest rates while the Fed raises them, expect currencies to continue their bumpy ride.
  9. Investing News

    Chipotle Served with Criminal Probe

    Chipotle's beat muted expectations and got a clear bill from the CDC, but it now appears that an investigation into its E.coli breakout has expanded.
  10. Stock Analysis

    Analyzing Sprint Corp's Return on Equity (ROE) (S)

    Learn about Sprint's return on equity. Find out why its ROE is negative and how asset turnover and financial leverage impact ROE relative to Sprint's peers.
RELATED FAQS
  1. Should mutual funds be subject to more regulation?

    Mutual funds, when compared to other types of pooled investments such as hedge funds, have very strict regulations. In fact, ... Read Full Answer >>
  2. Do ETFs pay capital gains?

    Exchange-traded funds (ETFs) can generate capital gains that are transferred to shareholders, typically once a year, triggering ... Read Full Answer >>
  3. How do real estate hedge funds work?

    A hedge fund is a type of investment vehicle and business structure that aggregates capital from multiple investors and invests ... Read Full Answer >>
  4. Are Vanguard ETFs commission-free?

    While some Vanguard exchange-traded funds (ETFs) are available commission-free from third-party brokers, a large portion ... Read Full Answer >>
  5. Do Vanguard ETFs require a minimum investment?

    Vanguard completely waives any U.S. dollar minimum amounts to buy its exchange-traded funds (ETFs), and the minimum ETF investment ... Read Full Answer >>
  6. Can mutual fund expense ratios be negative?

    Mutual fund expense ratios cannot be negative. An expense ratio is the sum total of all fees charged by an asset management ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center