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8 High-Dividend-Yield Defensive Stocks

6. PPL Corporation is an energy and utility holding company engaged in the generation of electricity from power plants in the northeastern, northwestern, and southeastern U.S. The company markets wholesale or retail energy primarily in the northeastern and northwestern regions of the U.S., delivers electricity to consumers in Pennsylvania, Kentucky, Virginia, Tennessee and the U.K. and natural gas in Kentucky.

For 2010 fourth quarter, PPL reported net income of $355 million or 73 cents per share, compared to $153 million or 40 cents per share in the year-ago quarter. Total revenue grew 8.9% to $1.9 billion from $1.7 billion on the back of a 22.9% increase in utility revenue coupled with 47.9% increase in revenue from realized wholesale energy marketing. For the full year, net income more than doubled to $938 million or $2.17 per share, compared to $407 million or $1.08 per share on revenue growth of 14.4% to $8.5 billion.

The company has completed the acquisition of Central Networks' electricity distribution business from E.ON UK plc in an all-cash transaction of $5.7 billion. Furthermore, the company declared a quarterly common stock dividend of 35 cents per share. For the full year, the company paid dividend of $1.40 per share ($566 million), compared to $1.38 per share ($517 million) during 2009.

PPL recently raised its 2011 earnings guidance to $2.50-$2.75 per share from the earlier $2.40-$2.60 per share.

The company currently has a dividend yield of 5.3%. Rated by 14 analysts, the stock has 43% buy and 57% hold. On average, analysts estimate an upside of 9.5% to $28 in value from current levels. The stock currently trades at an attractive P/E of 8.

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