3 Buy-Rated Dividend Stocks: DLR, WR, KKR
Westar Energy (NYSE: WR) shares currently have a dividend yield of 4.30%. Westar Energy, Inc., an electric utility, engages in the generation, transmission, and distribution of electricity in Kansas. It produces electricity through various sources, including coal, wind, nuclear, natural gas, diesel, uranium, and landfill gas. The company has a P/E ratio of 13.59. The average volume for Westar Energy has been 789,300 shares per day over the past 30 days. Westar Energy has a market cap of $4.0 billion and is part of the utilities industry. Shares are up 12.2% year to date as of the close of trading on Tuesday. TheStreet Ratings rates Westar Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- WR's revenue growth has slightly outpaced the industry average of 14.0%. Since the same quarter one year prior, revenues rose by 14.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electric Utilities industry. The net income increased by 85.8% when compared to the same quarter one year prior, rising from $27.52 million to $51.14 million.
- Net operating cash flow has significantly increased by 202.72% to $193.63 million when compared to the same quarter last year. In addition, WESTAR ENERGY INC has also vastly surpassed the industry average cash flow growth rate of 12.45%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market on the basis of return on equity, WESTAR ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Westar Energy Ratings Report.
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