Research on Evaluation of Utility Companies in the United States of America

Abstract

In this paper some of the utility companies in the United States of America have been examined in terms of dividend payouts, current financial evaluation and future growth potential. The utility companies in the United States of America and all over the world have been one of the biggest dividend payers. They provide services that are basic necessities which is why, these companies are being regulated by the local governments. That oversight has prevented that sector from growing, compared to other sectors of the economy. However, historically utility companies have been the biggest dividend payer over time. Utility companies are among the lowest-risk securities available, commonly having more-than-adequate cash flows and excellent credit ratings. They are conservative, low-volatility, non-cyclical investments. The utilities sector's primary appeal to investors is its resistance to economic ups and downs.  Their dividend payouts, current financial evaluation and potential for future growth will be used to draw some conclusions about investing in that sector. Duke Energy Corporation (DUK), PPL Corporation (PPL), The Southern Company (SO) and American Electric Power Company, Inc. (AEP) are examined by a side by side comparison to select the one with the highest potential. 

Keywords: dividend, growth of utility companies, utilities, utilities dividends