Northeast Utilities: A Power Sector Gem

Filed under: Stocks to Buy, Northeast Utilities (NU)

To be sure, today's equity market remains one that's filled with risks from near and far (such as in Europe) -- risks that can disrupt even the strongest stocks. However, if you're willing to assume some risk, consider utility Northeast Utilities (NU), for the opportunity to net a modest capital gain, plus a dividend.



Northeast's proposed merger with NStar (NST) should close in the second half of 2011, and create one of the largest utility companies in the U.S. The deal should be accretive to earnings in 2011. NU, first discussed here on May 5, 2009 at a price of $21.48, boasts an annual dividend of $1.60.



The new, larger company's name will be Northeast Utilities, and it will own six regulated gas and electric utilities operations in New England, primarily in Connecticut, Massachusetts and New Hampshire, serving 3.5 million customers.

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Northeast Utilities: A Power Sector Gem originally appeared on BloggingStocks on Wed, 19 Jan 2011 17:30:00 EST. Please see our terms for use of feeds.

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