This Day On The Street
Continue to site
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

3. Avista Corp.

Fitch highlights Avista Corp (AVA - Get Report) as a potential regulated utility takeover target. Currently, the company carries a market cap of $1.46 billion and a dividend yield of 4.39%.

The Spokane, W.A -based utility has electricity generation, transmission and distribution operations through its Avista Utilities unit, which also distributes natural gas. The company also has a 76% stake in Ecova, an energy expense management service company that operates throughout the U.S. Ecova's main businesses is helping utilities and telecoms manage leasing arrangements, in addition to tracking energy and water use.

Founded in 1889 as the Washington Water Power Company, Avista got its present name through a 1998 name change.

Avista's utility serves customers with a mix of hydro, natural gas, coal and biomass generation that is delivered via over 2,100 miles of transmission lines and 17,000 miles of distribution lines to roughly half a million customers.

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

The company is expected to earn 45 cents a share when it reports fourth quarter earnings on Feb. 15, according to Zacks consensus estimates. Avista is expected to have revenue of $1.6 billion and net profits of $101 million in 2011, according to Bloomberg consensus estimates. In 2012, those sales and profit numbers are expected to $1.71 billion, but profits will rise to $105 million.

Analysts give Avista an average price target of $24.90 a share, a discount to the company's current share price of $25.28. For more on Avista shares, see TheStreet's portfolio of the highest yielding electric utility stocks.

In 2011, the company's shares gained over 14%, in line with overall sector returns. Bernstein analyst Hugh Wynne highlighted Avista as a potential takeover candidate because of its low valuation, in an Oct. 2011 research note.
9 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NVE $0.00 0.00%
POM $22.63 6.54%
AVA $39.82 0.00%
BRK.A $219,180.00 0.03%
BHK $13.49 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs