Undervalued Utilities Dividend Stocks

The utilities sector is traditionally known as defensive, meaning its returns are not highly correlated to the rest of the market. Since consumers need utilities services in good times and bad, the sector doesn’t often feel the volatility of the general market. For ideas on how to dig deeper into the utilities sector, we used Kapitall’s Super Screener to create an interested stock list of utilities.

1. We began with stocks from the utilities sector with market caps above $1 billion.
2. We then screened for those paying dividend yields between 2-7%.
3. Finally, we screened for those stocks trading at least 15% below their average analyst target price, which may indicate that they are attractively priced.

When considering dividend stocks, investors often look for sustainable dividend yields that aren’t too high, so we capped dividend yields at 7%.

Source: Kapitall

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