Aqua America Inc (WTR): Where Can an Investor Find Yield Today?

This could potentially become a revenue problem. However, on the expense side of the equation, this could be a blessing in disguise. Electric utilities have to be able to handle peak demand for electricity, and that typically happens on the sunniest of days. Those same days would be generating the most electricity from solar panel installations. If there are enough solar panels, a utility could potentially allow a power plant to retire without replacing it. Plus, its customers will still be paying electric distribution costs to be plugged into the grid for consistent electricity.

Duke has an operating margin of nearly 18% and sports a dividend of 4.30%. We can expect Duke to increase its dividend at a slow but steady rate going forward as it realizes synergies from its recent merger.

Foolish bottom line

All three of these stocks operate in industries that require massive amounts of capital to enter, and this gives each of these stocks some security. Conservative investors would do well investing in AT&T Inc. (NYSE:T) or Duke Energy Corp (NYSE:DUK) for their out sized yields. Investors that have a longer time horizon and don’t necessarily need dividend income today should invest in Aqua America Inc (NYSE:WTR) to see capital gains as well as dividend increases as this company expands.

Wes Patoka owns shares of AT&T, Duke, and Aqua America. The Motley Fool recommends Aqua America.

The article Where Can an Investor Find Yield Today? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.