The stock market provides a wide variety of investment options for everyone from novices to those who have made millions through the purchase of shares. A utility is a company that performs a service to the public and is subject to government regulation. Natural gas, electric, telephone, water, and sewer are common utilities that trade on the market.
Natural gas utility stocks are known for their stability and high dividend yields. Right now is an ideal time to purchase these stocks due to the increased energy outputs resulting from this especially hot summer. But wait, you say, most air conditioners run on electricity, not gas. Correct, but utilities generate that electricity in different ways. Those that use natural gas to create electricity are in a good situation due to the low prices of natural gas.
OGE Energy is likely to benefit from this seasonal increase in the utility sector because natural gas is its largest source of energy used to generate electricity. The company has been able to keep its expenses down while having a healthy profit margin and respectable revenue figures. This company recently managed to achieve a 44 percent year over year earnings growth figure.
In addition to companies such as this that are not directly engaged in the production of natural gas, investors should look at those that are. Black Hill Corp., CH Energy Group Inc., Constellation Energy Group Inc., and DTE Energy Co. are diversified energy companies that engage in natural gas production and supply. These public utilities stocks are highly rated by those in the know.
Some natural gas distribution companies have multiple year histories of paying increasing dividends, which makes them also worthy of some investigation. These include Atmos Energy Corporation, National Fuel Gas, Northwest Natural Gas Company, Piedmont Natural Gas, and WGL Holdings. Investing in these stocks will provide a steady flow of income even when the company shares are not increasing in price.
For more steady stocks that pay good dividends, check out my dividend stocks website.