Brooklyn Union Gas
"Natural gas utilities show great promise for the 1990s, but most are also too risky for income investors. One exception is Brooklyn Union Gas (BU, NYSE, around $30)," says The Utility Forecaster of Alexandria, Va.
"The company serves three New York City boroughs -- Brooklyn, Queens and Staten Island.
"The company can look forward to rising sales and profits throughout the 1990s. Offering a relatively high yield of 7 percent, we can't resist adding Brooklyn Union to our growth portfolio."
New England Electric
"New England Electric Systems (NES, NYSE, around $30) is having a good year despite the region's economy," says United & Babson Report of Wellesley Hills, Mass.
"A series of rate increases related to the commercial operation of the Seabrook nuclear plant is giving a real boost to profits. Net this year should jump 16 percent to $2.70 a share. Electric sales are expected to be down this year and next due to the economy, but significant belt-tightening efforts and rate-increase requests should protect earnings.PacifiCorp
(PPW, NYSE, around $22), one of the most profitable utility companies in the West, serves 1.2 million customers in a seven-state territory from California to Wyoming," says Investment Quality Trends of La Jolla, Calif.
"This non-nuclear utility firm has invested millions of dollars in conservation measures. . .
"Currently yielding 7 percent, we expect the stock to outperform the industry in the year ahead. Investors may plug-in to the stock in anticipation of solid long-term total returns."
"Northeast Utilities (NU, NYSE, around $22) is the largest electric utility in New England," explains Investment Quality Trends of La Jolla, Calif.
"Until the region rebounds from the recession and the company has an opportunity to adjust to the acquisition of Public Service of New Hampshire, earnings will be flat. However, the current 8 percent yield is excellent. The downside risk is modest, while the potential remains for 150 percent appreciation. Northeast Utilities is a safe addition to a portfolio."