iQ Utilities Model

 

 

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Utility stocks are common stocks that represent shares of ownership in a utility company, and they usually pay dividends on either a monthly or quarterly basis. One of the reasons why utility stocks tend to be stable in price is because the government allows them to act as monopolies within their respective municipalities, as it would be inefficient and wasteful for several different companies to lay water pipes, gas lines, and telephone wires within the same areas. This serves to stabilize the industry, and allows each utility to operate unencumbered by competition.

Process:

  1. Start with the largest 100 domestically-traded companies from the Utilities sector

  2. Select the 30 companies with the highest Price Momentum.

  3. Screen by Operating Earnings Yield and select the top 10.