Don’t Be Deceived by SCANA’s 5.3% Dividend Yield



Dividend yield

SCANA (SCG) is now the highest-yielding S&P 500 Utility stock with a dividend yield of 5.34%. But the yield has increased due to its stock’s recent fall. SCANA’s five-year historical dividend yield is at ~3.7%—far lower than its current yield.

However, the stock could remain under pressure due to the uncertainties arising from an ongoing investigation and leadership changes.

SCG stock has fallen ~36% in the past three months, and during the same period, its dividend yield has risen from 3.70% to 5.34%. By comparison, the Utilities Select Sector SPDR ETF (XLU) is now trading at a dividend yield of 3.5%.

Regulated utility giants Southern Company (SO) and Duke Energy (DUK) now offer better dividend growth prospects with more stable dividend yields. SO offers a yield of 4.5%, while DUK is now trading at a yield of 4.1%.

You can compare dividend profiles of top utilities (VPU) if you read Market Realist’s series. The Top Utilities by Dividend: NEE, DUK, SO, and D.

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