Some high-yield dividend utility stocks are natural gas company TransAlta (annualized yield of 9.5 percent) and electricity companies CenterPoint Energy (5.1 percent), Southern Energy (4.9 percent) and PPL Corporation (4.8 percent), according to a May 10, 2015 article on The Yield Hunter. Utility companies generally provide regular dividend income.
The dividends from utility stocks are generally higher than what a certificate of deposit or savings bond pays, says Money Crashers. Utility stocks are also easy to sell and do well in bear markets. On the downside, they have limited growth potential, and just like any investment in the stock market, the principal investment may disappear if the stock price steeply declines or if the company goes bankrupt.