Action to take: With a forward P/E of roughly 13 and a dividend yield of about 5.0%, TECO could earn $1.35 per share this year, a 6% increase compared with 2011. Be prepared to wait for some upward movement in share price. The generous dividend is good compensation for that wait.

All in all, this is not bad for a company that's priced like a traditional utility. I'm comfortable with the company's 67% dividend payout ratio and its ability to generate cash. With this in mind, a modest P/E expansion of 15% would create a 12-month price target of $20 per share. Adding the dividend would bring the total return to 20%. This is definitely not Apple ( AAPL) or Google ( GOOG)-like return territory, but if you're looking for stability, income and some growth, then this fits the bill.

Adam Fischbaum does not personally hold positions in any securities mentioned in this article.

StreetAuthority LLC owns shares of GOOG in one or more if its "real money" portfolios.

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