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7 Utility Stocks to Power Your Investment Income

By U.S. News & World Report

This is where to find reliable dividend investments.

With the recent cold weather sweeping the nation, many Americans have an eye on their utility bills. Even those who wear a sweater and wool socks are bracing for higher natural gas or electricity expenses. But long term, most households and businesses use electricity at a very reliable pace. This reliability makes utility stocks a tremendous opportunity for investors. It’s not short-term spikes in demand that matter, but the stability that comes from a highly regulated industry where many operators have geographic monopolies. This stable business model results in similarly stable dividend payments to investors. Here are seven top picks to consider for 2018.

Consolidated Edison (NYSE: ED)

Known as ConEd to roughly 10 million customers in greater New York City, this utility stock is the poster child of a good income investment. Founded almost 200 years ago and with more than a 100 years of dividend payments, this stock is as stable as they come. On top of this history, ConEd has a long track record of increasing its payments to shareholders. The company has increased its quarterly dividend payments at least once in each of the last 43 consecutive years. The regional dominance of an electric utility is always a good thing, but it’s an added plus when that company is in a thriving metropolitan area.

Dividend yield: 3.3 percent

Next Era Energy Partners (NEP)

A more aggressive play is Next Era Energy Partners, a utility and energy company committed to clean energy projects like wind farms and solar power generation facilities. This is admittedly a niche category, but green energy is an increasingly important part of the U.S. power grid. And lest you think NEP is some kind of start-up, keep in mind that the firm’s projects are focused on full contracted projects and only wind and solar stations in the most favorable geographic areas. As a result, Next Era is comfortably profitable. And since the company is structured as a partnership, NEP gets special corporate and tax benefits while its shareholders get a mandate for big dividend payments.

Dividend yield: 3.5 percent

AmeriGas Partners (APU)

Another interesting twist on utility investing is AmeriGas, a propane distribution company that offers cylinder exchanges at your local convenience store, as well as home distribution for customers that use propane for home heating or business use. APU is a bit more linked to the rise and fall of underlying propane prices, but over the long term the business evens out like any utility. And thanks to its structure as a master limited partnership like Next Era instead of a traditional corporation, the firm has a legal mandate to share its profits with its investors. It adds up to a generous yield and a reliable business for APU.

Dividend yield: 8.1 percent

Southern Co. (SO)

Southern Co. is one of the largest utilities in the U.S., with a market value of almost $48 billion serving 19 states mainly from Maryland to Florida through electric power and natural gas subsidiaries. This company offers scale and stability, but also a record of reliable income. Southern Co. has mailed checks to its shareholders every quarter since 1982. Furthermore, this utility has steadily increased payouts annually since 2001. Shares have been a bit volatile lately with setbacks on plans for a nuclear power plant and a “clean coal” plant in Mississippi. However, the long-term track record of this company is quite sound.

Dividend yield: 4.9 percent

Public Service Enterprise Group (PEG)

Public Service Enterprise Group is an energy company that operates in the Northeast. It serves roughly 2 million power and 2 million gas customers in about 300 communities mostly in New Jersey. What makes PEG stock an interesting investment is its acquisition potential. The company was sought by Exelon Corp. (EXC) in the mid-2000s, but the deal was scuttled because of regulatory fears. In a more business-friendly environment in 2018, there’s a chance that Public Service Enterprise Group is again in play as a buyout target. And if not, income investors can continue to cash those quarterly dividend checks.

Dividend yield: 3.4 percent

CenterPoint Energy (CNP)

CenterPoint Energy is another dual utility, with a core electric transmission business complimented by natural gas distribution. These arms provide a great one-two punch that ensures a steady revenue stream for many years to come. What’s more, recent earnings reports show that CenterPoint is actually doing a decent job growing its customer base across states in the center of the country that include Arkansas, Oklahoma and Texas. This consistent single-digit customer growth adds up over time. CenterPoint also owns a controlling interest in Enable Midstream Partners (ENBL), a pipeline operator that provides an added bump to payouts and a nice diversification to an already very stable business model.

Dividend yield: 3.9 percent

Duke Energy Corp. (DUK)

Duke Energy is another big-time utility worth a look from income-oriented investors. With massive operations across North Carolina, South Carolina and Florida, it is one of the largest American electric utilities thanks to a series of acquisitions in recent years. Duke stock underperformed the broader Standard & Poor’s 500 index in 2017, in part over questions about coal plant clean-up costs in North Carolina. That soft performance is a long-term investor’s opportunity, however, since you can now buy in at a very good price. Over time, the rate-increase headlines won’t matter much and the dividends are sure to keep coming to power your portfolio.

Dividend yield: 4 percent

More from U.S. News

7 of the Best Stocks to Buy for 2018

7 of the Best Dividend Stocks to Buy for 2018

7 of the Best Energy Stocks to Buy for 2018

7 Utility Stocks to Power Your Investment Income originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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