5 High Yield Utilty Preferred Choices



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With an unstable economy, many investors are chasing yield and looking for it to be safe. Today we offer 5 Utility Preferreds with a decent yield for your investment. Keep in mind that not all are Canadian Utility companies and you may not be able to purchase them inside a TFSA or RSP.

1. DTE Energy Series A (NYSE: DTE-A). Yielding at about 7.5% this one is a Michigan based utility with a nice fat yield. At a glance their books appear to be in solid shape, but this article is intended to provide you a base research point for investing.

2. Canadian Utilities, PREF - A,B (TSX: CU-A). This Canadian utility powerhouse has a current yield of about 6% and the underlying has a pretty solid financial position.

3. Alabama Power Co. P series (NYSE:ALP-P) is a subsidiary of the Southern Company (SO) and appears to have very solid books and a yield of about 5%

4. Pacific Northern Gas (TSE: PNG-a) is an east coast utility company that yields about 6.75%.

5. AES Corporation Class C Preferred Stock (NYSE:AES-C). AES is a global power generator. These preferred class shares currently yield at about 7%.

These are but some of the many preferred dividend choices you can pick in the utility sector. There are many great yields out there, but be careful of owning too many pref shares if you are concerned about inflation.

The author currently owns shares of PNG-A and CU-B - Oct 14, 2010