Sunday, February 24, 2013

VVC Vectren Company another 2013 dividend machine

Vectren
Vectren (Photo credit: Lori SR)
This weekend’s hunt for dividends was interesting.  I found several companies that qualified, but I will add only one to my 2013 dividend machine list and that company is a utility.  Utilities have been considered very safe stocks for folks who need income; often times called stocks for widows and orphans.  VVC, Vectren Energy Company is the company I will add to my 2013 list and I will buy more for my own portfolio.


Utilities for income investors


This group of companies is not as boring as you might think.  Look at Exelon’s run from over $90 a share to $30 a share; that period included a dividend cut.  Duke energy bought Progress energy and Ameren will abandon Ameren Energy Generating Company.  Coal was … hot … and nuclear was cold.   How should you pick a utility to include in your income investing portfolio?  How does Vectren, VVC stack up?


Vectren Energy


Vectren is an energy holding company.  Almost all of them are holding companies.   Their subsidiaries provide energy to the Midwest including Indiana and Ohio.  This company has a fantastic dividend history having increased the dividend every year for 41 years.  Moreover, they earn a lot more in earnings than they pay out in dividends.


DIVIDEND MACHINE
2/25/2013
Vectren Energy Co.
VVC
Price when profiled
$33.02
Last 4 Qtrs Earnings
$1.94
Last 4 Qtrs Dividends
$1.41
Current Qtr Dividend
$0.355
Annualized Div Yield
4.33%
No. Years Div Increase
41 years
Debt/Equity ratio
1.27
Vectren Dividend Machine Fundamentals 


Vectren makes the cut based on its dividend machine fundamentals.  These are presented in the table to your right.  Their dividend history carries a significant amount of weight.  Their consistent EPS also helps differentiate VVC from other utility companies.


Every dividend portfolio will include one or more dividend stocks.  Consider VVC for your portfolio.  I did and I am very pleased with the results.



TheMoneyMadam
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