Michigan-based electric and gas utility CMS Energy Corporation (NYSE:CMS) was another high-yielding stock in Millennium’s portfolio (the dividend yield is 3.6%) although the fund was selling shares between October and December. The trailing earnings multiple of 20 is high, although CMS Energy Corporation (NYSE:CMS)’s net income did increase considerably in percentage terms in its last quarterly report compared to the fourth quarter of 2011 and we suppose it’s possible that trend will continue in the short term. Adage Capital Management, managed by Phil Gross and Robert Atchinson, increased its holdings by 24% to a total of over 2 million shares.
According to the 13F, Englander increased its stake in Duke Energy Corp (NYSE:DUK) to about 750,000 shares over the course of Q4 2012. At a market capitalization of $51 billion, Duke Energy Corp (NYSE:DUK) is one of the largest publicly traded U.S. utilities- potentially giving it more stability as a company- and like many other companies in the industry its beta is low and its yield is high (4.2% in this case). Duke Energy Corp (NYSE:DUK) operates in a number of geographies in the southeastern United States with an international segment as well. First Eagle Investment Management was another major shareholder in Duke Energy Corp (NYSE:DUK) at the end of 2012 (find First Eagle’s favorite stocks).
Millennium disclosed ownership of 1.1 million shares of American Electric Power Company, Inc. (NYSE:AEP) in its filing. American Electric Power pays a dividend yield of a little under 4%. Its earnings plunged in the fourth quarter of 2012 versus a year earlier, bringing the stock’s valuation to 19 times the company’s trailing earnings, but the sell-side expects business to recover and so the forward P/E is only 15. Cliff Asness’s AQR Capital Management increased the size of its position in American Electric Power Company, Inc. (NYSE:AEP) by 19% to 1.2 million shares (see more stocks Asness was buying).
Disclosure: I own no shares of any stocks mentioned in this article.