BOSTON ( TheStreet) -- Utility stocks were the rage in July when investors feared a double-dip. But, in anticipation of QE2, dividend-payers trailed riskier stocks. Utilities currently comprise the cheapest U.S. sector based on earnings expectations. They also represent the most inexpensive subset of the S&P 500 despite yielding more than the U.S. 10-year Treasury bond. Here are the 10 cheapest large-cap utility stocks, from cheap to cheapest.10. Edison International (EIX - Get Report) sells electricity in coastal and southern California. Its third-quarter profit increased 27% to $510 million, or $1.57 a share, as revenue grew 3.4%. The operating margin widened from 21% to 23%. Edison has $2 billion of cash and $12 billion of debt. Its stock trades at a trailing earnings multiple of 9.5, a forward earnings multiple of 12, a book value multiple of 1.1 and a cash flow multiple of 3.3, 34%, 5%, 32% and 39% discounts to utility peer averages. Half of the analysts covering Edison rate it "buy" and half rate it "hold."
10 Bargain Dividend Stocks in Cheapest Sector
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