Bottom of the Barrel: UGI Could Gas Up Your Portfolio

For investors looking for small-cap yield with stable growth, a gas utility like UGI Corp(UGI Quote) can add fuel to a portfolio.

UGI is in the power and gas business, distributing natural gas and electricity to about 340,000 customers in eastern Pennsylvania. It also operates an electric generation business in northeastern Pennsylvania, and markets natural gas, power and heating oil to customers in the mid-Atlantic.

That's no different than any other utility. What makes UGI different is its 51% ownership of AmeriGas Partners(APU Quote), the nation's largest retailer of propane. AmeriGas delivers more than one billion gallons of propane to a million-plus customers around the country. In fact, there is a pretty good chance that propane cylinder on your patio grill somehow was touched by AmeriGas. Also, UGI is expanding the propane business internationally and is now one of the largest retail marketers of propane in Austria, the Czech Republic, France, Slovakia and China. ...