On March 1, 2022, the utilities sector began to outperform the S&P 500 and is currently up 10.83% year-to-date while the S&P 500 is down 11.67%.
On January 19, 2022, DTE energy DTE, Michigan’s largest energy company, proposed a $388 million investment in the state’s power grid and electrical storage and generation system to prepare for the demands of the 21st century. DTE Energy is seeking Michigan Public Service Commission (MPSC) approval for its first rate increase in two and a half years, which will increase consumer bills by about $10 a month.
With energy inflation remaining high, it’s not surprising that utilities may have to increase their tariffs to keep up with pricing pressures. Here are two companies in the utilities sector who could benefit from the upcoming winter season.
National Grid PLC NGG offers a dividend yield of 6.65%, or $4.19 per share annually, makes semi-annual payments, and has a mixed track record of growing dividend payments. National Grid owns and operates the electricity and gas transmission system in England and Wales, serving 7.1 million electricity and gas customers in three states in the Northeastern United States as of 2021.
For full year results ended March 31, 2022, National Grid reported an 82% increase in operating income as the company continues to invest in its five-year $35 billion to $40 billion capital expenditure program and already has a record $7.7 billion in critical Energy provides infrastructure.
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Sempra energy SRE offers a dividend yield of 2.63%, or $4.58 per share annually through quarterly payments, with an outstanding track record of growing its dividends for 19 years. Sempra energy serves one of the largest utility customer bases in the United States, distributes natural gas and power in Southern California and owns 80% of Oncor, a transmission and distribution company in…
