In this market it's not easy to find stocks that have long term rates of growth that are positive and still offer investors a reasonable yield. But if you're looking for companies that also trade with a good multiple on earnings, you're really going to have to dig.
We did exactly that and unearthed three stocks (count 'em!) that fit the bill. No surprise, perhaps, that they all hail from the utilities sector. Each has positive EPS and revenue numbers for the last decade, and is currently yielding at least 5% annually.
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Carolina Profits on My Mind
Scana Corporation (NYSE:SCG) is an electricity and natural gas supplier to customers in the Carolinas. The company has a current annual yield of 5% and trades with a one year trailing P/E of 12.9. Price-to-book is a very reasonable 1.33 and price-to-sales just 1.07.
In the last year the stock has climbed over 25%, and in the last ten by over 46%. That's strong, compared to the Utilities SPDR ETF (NYSE:XLU), which is up only 9% for the previous decade and the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), which gained only 2% in that period. Revenue and EPS growth for the decade come in at 7.38% and 5.13% respectively.
Scana is now in the midst of pricing a new $265 million share offering, the proceeds of which will be used to enhance the company's power generation capability. The plan is to construct a number of new nuclear units that Scana will manage and operate.
Another Carolina Cash Generator
Progress Energy, Inc (NYSE:PGN) is exclusively an electricity supplier, serving 3.1 million retail clients as well as other larger industrial entities in the Carolinas and Florida. The stock trades with a P/E of 13.5 and carries a nice 6.15% annual yield.
The shares have tacked on nearly 20% over the last decade. This was achieved while the company also grew revenue (11.38%) and EPS (1.61%) numbers at a positive clip over the same time frame. Progress is 54% owned by professional investors.
The First is Last
First Energy Corp. (NYSE:FE) offers an attractive 5.9% dividend yield and a competitive P/E of 10.9. Ten year revenue growth comes in at 7.45% and EPS at 2.78%. In the last decade, FE shares are up 50%.
Income investors seeking long term growth and capital appreciation need look no further. These three issues come equipped with both strong management and lucrative yields. (For more, see Dividend Facts You May Not Know.)
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