The Best Yielding, Large Cap Utility Stocks

 | May 07, 2012 02:06AM ET

It’s very important to know what yields are traded within a sector or industry in order to compare risks and premiums. I made a screen of the best yielding large capitalized utility stocks. 24 companies from the technology sector have a market capitalization over USD 10 billion and 22 of them pay dividends. Below, I listed all stocks with a positive yield.

The best represented industry is the electric utility industry with 16 companies. Six stocks from the results are high yields and 11 are recommended to buy.

American Electric Power (NYSE:AEP) has a market capitalization of $18.69 billion. The company employs 18,710 people, generates revenues of $15,116.00 million and has a net income of $1,549.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,437.00 million. Because of these figures, the EBITDA margin is 29.35 percent (operating margin 18.40 percent and the net profit margin finally 10.25 percent). 

Financial Analysis: The total debt representing 34.79 percent of the company’s assets and the total debt in relation to the equity amounts to 123.88 percent. Due to the financial situation, a return on equity of 11.09 percent was realized. Twelve trailing months earnings per share reached a value of $3.32. Last fiscal year, the company paid $1.85 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.62, P/S ratio 1.24 and P/B ratio 1.27. Dividend Yield: 4.88 percent. The beta ratio is 0.50.