3 Dividend Stocks Betting Bigger on Natural Gas


Published on

The AES Corporation, Duke Energy Corporation, and Dominion Resources, Inc. still have steady room to grow.
If you're like most investors, you probably feel like you got left out of the natural gas rush. Stocks soared, early shareholders made bank, and now the natural gas sector is overpriced and inaccessible.
Except it's not. While pure play natural gas stocks have taken the spot-light, lesser-known utility dividend stocks like The AES Corporation (NYSE: AES), Duke Energy Corporation (NYSE: DUK), and Dominion Resources, Inc. (NYSE: D) are still adding on to their natural gas portfolios.
With decent valuations and steady dividends, these stocks could prove even more profitable in the long-run. Check out the slideshow below for these companies' latest natural gas additions – it's not too late to make your own natural gas dividend stock investment.

Published in: Investor Relations, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

3 Dividend Stocks Betting Bigger on Natural Gas

  1. 1. 3 Dividend Stocks Betting Bigger on Natural Gas
  2. 2. The Rise of Natural Gas Natural gas soared in the early 2000s due to: • Increasingly expensive alternatives • Expanded domestic production • Supportive government policy
  3. 3. Natural Gas Stocks Soared As investors caught on, natural gas stocks jumped to record valuations
  4. 4. But there’s a safer bet Utilities offer natural gas upside with a built-in safety net of regulated earnings. That means: • Less risk • Better valuations • Bigger dividends
  5. 5. 3 New Natural Gas Opportunities
  6. 6. The AES Corporation On May 15, the AES Corporation announced that Indiana regulators approved the construction of two new natural gas plants totaling 850 MW of generating capacity.
  7. 7. The AES Corporation That’s a significant boost to its current natural gas capacity, which clocks in around 12,250 MW.
  8. 8. The AES Corporation "This significant milestone demonstrates our continued ability to develop and invest in attractive platform expansion opportunities. Including this CCGT [combined- cycle gas turbine] project at IPL, in the past six months, we have received final approvals for, or reached financial closing on approximately 2,600 MW of expansion projects in the United States, Chile, India and Panama, which will come on-line and contribute to our earnings and cash flow growth in 2015 through 2018." -AES President and CEO Andrés Gluski
  9. 9. Duke Energy Corporation Duke Energy Corporation is diving deeper into natural gas with double-whammy announcements: • May 13 – 3 Florida plants totaling 1,960 MW • May 16 – 1 South Carolina plant totaling 750 MW
  10. 10. "Natural gas-fired combined cycle plants are a good match to meet the significant energy needs of our customers over the next 15 years, and are expected to be an important part of the future Duke Energy Carolinas generation portfolio. They are very efficient in the production of electricity using natural gas as fuel and have very low plant emissions." -Duke Energy State President of South Carolina Clark Gillespy
  11. 11. Dominion Resources, Inc. While AES Corporation and Duke Energy Corporation are going in on new natural gas plants, Dominion Resources, Inc. is eyeing transmission opportunities.
  12. 12. Dominion Resources, Inc. Dominion Resources, Inc. announced on June 3 that it wants to expand its natural gas transmission infrastructure to: 1) Increase its natural gas offerings to National Grid (NYSE: NGG) customers in New York 2) Grow natural suppliers in the Appalachian Basin
  13. 13. Dominion Resources, Inc. "Natural gas produced from the Marcellus and Utica shales in the Appalachian region of West Virginia and Ohio is expected to continue its strong and rapid growth. Our interstate pipeline system is uniquely positioned to transport Appalachian production as our pipelines traverse the area of significant supply growth. Additional firm transportation capacity for new natural gas supplies for both projects also will alleviate the possibility of shortages by providing more gas to market." - Dominion Energy President Diane Leopold
  14. 14. Dominion Resources, Inc. If Dominion Resources, Inc.’s request is granted, that means more supply for Southern natural gas plants – an even bigger boost for Duke Energy’s new investments. $$$
  15. 15. Over the past 10 years, all three stocks have lagged behind an index of the biggest natural gas corporations.
  16. 16. With growing natural gas portfolios, any of these companies could be your ticket to a strong stream of steady income.
  17. 17. Top dividend stocks for the next decade The smartest investors know that dividend stocks like AES, Dominion, and Duke simply crush their non-dividend paying counterparts over the long term. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high- yielding stocks that should be in any income investor’s portfolio. To see our free report on these stocks, just click here now.