Utilities have been red-hot in the past month, as subscribers to my private advisory service - The Strategic Advantage - have earned double-digit profits on power generators from Vermont to Arizona.
Let's take a look at one of my favorites now: OGE Energy Corp. (NYSE: OGE), the parent company of electric utility Oklahoma Gas and Electric Co. and natural gas pipeline operator Enogex LLC.
OGE exemplifies our summer theme: Low-risk asset growth, stable earnings and rising dividends. The stock has performed very well for us - it's up more than 11% this month. OGE also pays a 3.7% dividend.
We've talked a lot about utilities, but it is hard to overstate their importance. Businesses need electricity to run production lines, operate computer servers, manage inventory, and light buildings. A power outage that only lasts a few minutes can cost a business thousands of dollars, because machines need to be readjusted so that products can be correctly assembled.
Oklahoma Gas and Electric is the utility unit of OGE and provides electricity to nearly 800,000 customers in Oklahoma and western Arkansas. It is a sizeable utility with $3.14 billion in annual sales and a $3.83 billion market cap. OGE mainly generates electricity from natural gas because the utility receives excellent distribution rates from Enogex.