Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Stock Market»3 High-Quality Utility Stocks for Conservative Investors
    Stock Market

    3 High-Quality Utility Stocks for Conservative Investors

    August 12, 20246 Mins Read


    Utilities are well-established and fundamentally resilient because the demand for these services typically remains unaffected by economic fluctuations. Companies in this sector offer essential services such as electricity, gas, water, and telecommunications, which are consistently needed.

    Against this backdrop, investors could consider high-quality utility stocks Centrica plc (CPYYY), Brookfield Infrastructure Corporation (BIPC), and Genie Energy Ltd. (GNE) for conservative investors.

    The growth of the energy and utility market is positively influenced by rising energy demand in both developing and developed countries and a focus on green energy production. The utility market is expected to grow at a CAGR of 6.4% to reach $8.83 trillion by 2028.

    Furthermore, the generative AI market in the utilities sector is experiencing growth as utilities increasingly recognize its potential to revolutionize their operations. The global generative AI In utilities market is expected to grow at a CAGR of 34% by 2033.

    Considering these factors, let’s examine the fundamentals of the utility sector stock picks.

    Centrica plc (CPYYY)

    Headquartered in Windsor, the United Kingdom, CPYYY is an integrated energy company operating in the United Kingdom, Ireland, Scandinavia, North America, and internationally. The company operates through British Gas Services & Solutions, British Gas Energy, Centrica Business Solutions, Bord Gáis Energy, Centrica Energy, and Upstream segments. 

    CPYYY pays an annual dividend of $0.20, which translates to a yield of 3.16% at the current share price. Its four-year average dividend yield is 1.04%.

    CPYYY’s trailing-12-month ROCE of 23.30% is 146.9% higher than the industry average of 9.44%. Its trailing-12-month ROTA of 6.711% is 127.5% higher than the industry average of 2.69%.

    During the six months that ended June 30, 2024, CPYYY’s total group revenue was reported at £10.54 billion ($13.45 billion), and its gross profit at £2.68 billion ($3.42 billion). Its profit for the period stood at £1.35 billion ($1.72 billion), and its earnings per share at 24.6pence.

    The stock has gained marginally intraday to close its last trading session at $6.42.

    CPYYY’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

    The stock has an A grade for Value and a B for Momentum, Quality, and Sentiment. It is ranked #1 out of 53 stocks in the Utilities – Foreign industry.

    Beyond what is stated above, we’ve also rated CPYYY for Stability and Growth. Get all CPYYY ratings here.

    Brookfield Infrastructure Corporation (BIPC)

    BIPC and its subsidiaries own and operate regulated natural gas transmission systems in Brazil. The company also engages in regulated gas and electricity distribution operations in the United Kingdom and electricity transmission and distribution and gas distribution in Australia.

    BIPC pays an annual dividend of $1.62, which translates to a yield of 4.35% at the current share price. Its four-year average dividend yield is 3.46%. BIPC has paid dividends for the past three years.

    In terms of the trailing-12-month Return on Total Capital, BIPC’s 12.21% is 205.5% higher than the 4% industry average. Likewise, its 36.76% trailing-12-month net income margin is 182.3% higher than the 13.02% industry average. Furthermore, the stock’s 82.31% trailing-12-month EBITDA margin is 124.7% higher than the 36.63% industry average.

    For the fiscal second quarter ended June 30, 2024, BIPC’s revenues rose 20.7% year-over-year to $5.14 billion. Net income attributable to the partnership came in at $8 million. Its consolidated funds from operations rose 27.2% year-over-year to $1.42 billion. In addition, its FFO per unit came in at $0.77, representing an increase of 6.9% year-over-year.

    For the quarter ending September 2024, BIPC’s FFO is expected to increase 8.5% year-over-year to $0.77. Its revenue for fiscal 2024 is expected to increase 6.3% year-over-year to $19.05 billion.

    Shares of BIPC have gained 25.6% over the past nine months to close the last trading session at $37.28.

    BIPC has an overall rating of B, equating to Buy in our proprietary rating system.

    BIPC has a B grade for Growth, Momentum, and Quality. It is ranked #1 out of 60 stocks in the Utilities – Domestic industry.

    In addition to the POWR Ratings highlighted above, one can access BIPC’s ratings for Value, Sentiment, and Stability here.  

    Genie Energy Ltd. (GNE)

    GNE supplies electricity and natural gas to residential and small business customers in the United States and internationally. It operates in two segments: GRE and Genie Renewables.

    GNE pays an annual dividend of $0.30, which translates to a yield of 1.87% at the current share price. Its four-year average dividend yield is 2.25%.

    GNE’s trailing-12-month ROTC of 17.44% is 336.4% higher than the industry average of 4%. Its trailing-12-month asset turnover ratio of 1.45x is 568.4% higher than the industry average of 0.22x.

    GNE’s total revenue for the fiscal second quarter that ended March 31, 2024, stood at $90.70 billion. In addition, its adjusted EBITDA was reported at $12 million. Also, its non-GAAP net income attributable to GNE stood at $10.10 million and $0.37 per share.

    GNE’s shares have gained 4.7% over the past month and to close the last trading session at $16.07.

    GNE has an overall B rating, equating to Buy in our proprietary rating system.

    It has a B grade for Momentum, Value, and Quality. Within the Utilities – Domestic industry, it is ranked #2.

    In addition to the POWR Ratings we’ve stated above, we also have GNE’s ratings for Stability, Sentiment, and Growth. Get all GNE ratings here.

    What To Do Next?

    43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.

    2024 Stock Market Outlook >


    CPYYY shares were trading at $6.65 per share on Monday afternoon, up $0.23 (+3.58%). Year-to-date, CPYYY has declined -6.89%, versus a 13.02% rise in the benchmark S&P 500 index during the same period.

    About the Author: Nidhi Agarwal

    Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor’s degree in finance and marketing and is pursuing the CFA program.

    Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More…

    More Resources for the Stocks in this Article



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Utilities ETF (IDU) Hits New 52-Week High

    Stock Market

    Tesla stock today rises as Musk lands $29B grant amid turmoil

    Stock Market

    Scotiabank strategist believes his ‘Top 30 Dividend Payers’ list of stocks will outperform

    Stock Market

    Stock Market Today: Sensex Falls Over 350 Points, Nifty Below 24,650 In Opening Trade; Check Details | Markets News

    Stock Market

    This High-Yield Dividend Stock Is Staging a Comeback. Should You Buy Shares Now?

    Stock Market

    Dow jumps 580 points, S&P 500, Nasdaq have best day since May as Wall Street bounces back

    Stock Market
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    How to Recover Lost or Stolen Cryptocurrency: The Ultimate Guide to Crypto Recovery

    Cryptocurrency

    How spot ether ETF launch may impact the broader crypto market (Cryptocurrency:ETH-USD)

    Cryptocurrency

    Cryptocurrency Arbitrum Up More Than 9% In 24 hours

    Editors Picks

    Essex Property Trust, Inc. : Janney Capital toujours neutre sur le dossier -Le 13 mars 2025 à 14:09

    March 13, 2025

    Gold SWOT: Uganda plans to start domestic gold purchases to build forex reserves.

    July 15, 2024

    New York Orders Utilities to Join in Proactive Grid Planning

    August 18, 2024

    Cboe Canada accueille sept nouveaux FNB d’actions de rendement de Purpose Investments

    February 20, 2025
    What's Hot

    Horry Co. residents shocked by property tax increases amid reassessment

    October 15, 2024

    ‘I worked 11-hour days as a London trader – running Middleton Castle is harder’

    October 13, 2024

    Aces’ Plum, Wilson call Mercury’s Copper NSFW word after Olympic gold medal win

    August 13, 2024
    Our Picks

    Axis Commercial Real Estate Fund: Axis Commercial Real Estate Fund acquires Fintech City plot for 75cr | Chennai News

    August 12, 2024

    Vietnamese premier urges digital currency legal framework this month

    March 2, 2025

    Property asking prices edge up AGAIN – but looming stamp duty hike and glut of homes makes life hard for sellers

    February 17, 2025
    Weekly Top

    World News Live Updates: WhatsApp Removes Over 6.8 Million Accounts in Global Anti-Scam Operation

    August 5, 2025

    Google says it will switch off energy-heavy AI usage at critical points if needed

    August 5, 2025

    Metal Gear Solid-alike Spy Drops fails to capture the magic of the game it apes – GameSpew

    August 5, 2025
    Editor's Pick

    Sei Investments Co. Has $952,000 Stock Holdings in DHT Holdings, Inc. (NYSE:DHT)

    July 29, 2024

    Gold price retraces from record high. US job data, Jerome Powell’s Jackson Hole speech in focus

    August 22, 2024

    Sonoma and Mendocino Counties Eyeing Major Geothermal Energy Projects

    August 8, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.