This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Dividend Rich, Deal Ready Utility Stocks Ready for a 2012 Jolt

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1. Empire District Electric

Fitch Ratings highlights sub-$1 billion regulated utility Empire District Electric (EDE - Get Report) as a potential takeover target. The company has a market cap of $866.8 million and it currently has suspended its dividend.

Joplin, M.O -based Empire District Electric had to suspend its dividend in May after a category five leveled the city, killing 160 people and injuring nearly 1000 more, creating billions in damages.

The public utility generates, purchases, transmits, distributes and sells electricity in Missouri, Kansas, Oklahoma and Arkansas via its electricity and gas units. The 102 year old company serves nearly 170,000 electricity customers and an additional 44,487 gas customers.

Fitch notes that the company operates in four regulatory jurisdictions, all of which would have to approve any merger or takeover.

The company is expected to earn 20 cents a share when it reports fourth quarter earnings on Feb. 2, according to Zacks consensus estimates. Empire District Electric is expected to have revenue of $573 million and net profits of $57 million in 2011, according to Bloomberg consensus estimates. In 2012, those sales and profit numbers are expected to rise to $606 million and $58 million, respectively.

In May, the company suspended its 25 cent a share dividend for an expected two quarters. In 2010, the company paid out $1.28 in dividends, but has not yet announced a resumption.

Analysts give Empire District Electric an average price target of $22 a share, a 6.33% premium to the company's current share price of $20.69. For more on Empire District Electric's shares, see the portfolio of 8 high yield defensive stocks.

In 2011, the company's shares fell over 5%, recovering from a near 20% share drop in the days after the Joplin, M.O.-tornado.

In 2006, Empire acquired natural gas distribution rights from Aquila, expanding its Midwestern footprint.

-- Written by Antoine Gara in New York
11 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
NVE $0.00 0.00%
AVA $32.29 0.00%
BRK.A $214,150.00 0.00%
BHK $12.73 0.00%
EDE $22.81 0.00%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs