What Are Some High-Dividend Utility Stocks?


Quick Answer

American Midstream Partners LP and Atlas Energy are two high-paying dividend utility stocks, according to Dividends.com. American Midstream Partners pays a 12.22 percent dividend yield, while Atlas Energy pays a 47.49 percent yield, respectively, as of July 2015.

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Full Answer

Utility companies provide individuals and businesses with resources such as natural gas, electricity and water. Investors who follow the utilities sector consider the stocks of these companies as long-term investment opportunities because the businesses are well-known and established, cites Dividends.com. Utility companies receive heavy regulation by local, state and federal governments and normally operate in specific regions; therefore, the companies establish long-standing reputations within their region.

Many investors see little opportunity for substantial growth for these companies, so the utilities pay above-average dividends in order to attract investor attention, explains Dividends.com. Utility companies such as American Midstream and Atlas Energy pay above-average dividends on a consistent basis in the hopes they attract long-term investors who want to build income-producing stock portfolios. Atlas Energy, for example, only saw its stock price fluctuate between $5 and $8 per share from July 2, 2014 to July 2, 2015, although most major market indexes experienced substantial gains. From August 5, 2013 to May 5, 2015, American Midstream Partners consistently paid between 9 and 12 percent dividend yields to shareholders, cites StreetInsider.com.

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