Investors Flock to High-Yielding Dividend Stocks as Yields on Treasury Notes Plunge

NEW YORK, NY / ACCESSWIRE / July 5, 2016 / The volatile markets in 2016 have seen investors turn to the stability of high-yielding dividend stocks. The S&P High Yield Dividend Aristocrats Index, which seeks to measure the performance of companies within the S&P Composite 1500 that have increased dividends every year for at least 20 years, has gained approximately 14.1 percent year-to-date, compared to a gain of just 2.9 percent for the S&P 500 Index.

According to Investopedia, a defensive stock is “a stock that provides a constant dividend and stable earnings regardless of the state of the overall stock market.” Defensive sectors, such as utilities and consumer staples, have historically been most appealing to investors in times of uncertainty due to their stable earnings and high dividend yields, which in most cases outperform the interest gained from long-term Treasury notes and bonds. Data from FactSet shows utility stocks in the S&P 500 Index offer an average dividend yield of 3.4 percent, which compares to a yield of just 1.446 percent on the benchmark 10-year Treasury note. Register with us now for your free membership and gain access to our dividend paying stocks’ reports at: http://rdinvesting.com/

American Electric Power Company Inc. (NYSE: AEP)

Get Your Up-To-Date American Electric Power Research
Report at www.rdinvesting.com/company/AEP

American Electric Power’s shares gained 0.07 percent to close at $70.14 a share Friday. The stock traded between $69.45 and $70.49 on volume of 2.11 million shares traded. The stock appears to have some support at the $69.44, $66.73 and $65.86 levels. American Electric currently offers investors an annualized dividend of $2.24 a share for dividend yield of roughly 3.20 percent. The company reported $1.02 earnings per share (EPS) for the first quarter of 2016, which fell short of analysts’ consensus estimates of $1.04. Shares of American Electric Power have gained approximately 20.4 percent year-to-date and are up roughly 8.1 percent in the past month.

Duke Energy Corp.
(NYSE: DUK)

Get Your Up-To-Date Duke Energy Research Report at www.rdinvesting.com/company/DUK

Duke Energy’s shares declined 0.19 percent to close at $85.63 a share Friday. The stock traded between $84.77 and $86.15 on volume of 3.40 million shares traded. The stock appears to have some support at the $84.79, $83.94 and $83.14 levels. Duke Energy currently offers investors an annual annualized dividend of $3.30 a share for a dividend yield of roughly 3.85 percent. The company reported a profit of $694 million, or EPS of $1.01 a share, for the first quarter of 2016, down from $864 million, or EPS of $1.22 a share, a year ago. Shares of Duke Energy have gained approximately 20.0 percent year-to-date and are up roughly 8.4 percent in the past month.

FirstEnergy Corp. (NYSE: FE)

Get Your Up-To-Date FirstEnergy Research Report at www.rdinvesting.com/company/FE

First Energy shares gained 0.63 percent to close at $35.13 a share Friday. The stock traded between $34.83 and $35.29 on volume of 3.25 million shares traded. The stock appears to be facing some resistance at $35.45 and $36.06 with some support at $34.60 and $34.33. First Energy currently offers investors an annualized dividend of $1.44 a share for a dividend yield of roughly 4.10 percent. The company reported a GAAP net income of $328 million, or EPS of $0.78 per share, on revenue of $3.9 billion for the first quarter of 2016, this compares to a GAAP net income of $222 million, or EPS of $0.53 per share, on revenue of $3.9 billion for the first quarter of 2015. Shares of First Energy have gained approximately 10.7 percent year-to-date and are up roughly 3.9 percent in the past month.

Southern Co. (NYSE: SO)

Get Your Up-To-Date Southern Co.’s Research Report at www.rdinvesting.com/company/DUK

Southern Co.’s shares gained 0.37 percent to close at $53.83 a share Friday. The stock traded between $53.03 and $53.95 on volume of 6.23 million shares traded. The stock appears to have some support at the $53.06, $51.82 and $51.14 levels. Southern Co. currently offers investors an annualized dividend of $2.24 a share for a dividend yield of roughly 4.16 percent. The company has reported first quarter 2016 net earnings of $485 million, or EPS of $0.53 per share, on revenue of $4.0 billion, compared to net earnings of $508 million, or EPS of $0.56 per share, on revenue of $4.2 billion in the same quarter a year ago. On July 1^st, Southern Company and AGL Resources announced the completion of their merger. With the merger Southern Company now has 11 electric and natural gas utilities with operations across the U.S. Shares of Southern Co have gained approximately 15.0 percent year-to-date and are up roughly 8.6 percent in the past month.

Research Driven Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at http://rdinvesting.com/disclaimer/.

CONTACT
For any questions, inquiries, or comments reach out to us directly at:

Address:
Research Driven Investing,
511 Avenue of the Americas,
Unit #901
New York, NY, 10011

Email:
contact@rdinvesting.com

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: RDInvesting.com

ReleaseID: 441930