2 No-Brainer High-Yield Utility Stocks to Buy Right Now for Less Than $200

Investing in utility stocks can provide a steady income stream and dividend growth, even in fluctuating markets. Two notable options trading below $200 are Black Hills Corporation (BKH) and UGI Corporation (UGI). This article explores their dividend payouts, growth potential, and alignment with environmental concerns.

Black Hills Corporation (BKH) is a small but mighty utility, serving approximately 1.3 million customers. As a Dividend King, Black Hills has increased its dividend for 50-plus years, currently offering a 4.3% yield. Despite a material debt load, the company has seen customer growth nearly three times faster than the U.S. population. With interest rates falling, Black Hills is poised for earnings growth of 4% to 6% annually, supporting dividend increases.

UGI Corporation (UGI) is a diversified utility with a 140-year history of paying dividends. Its 6% yield is attractive, especially as the company works through a business reset. Management plans to hold the dividend steady through 2026 while prioritizing debt reduction. Once the reset is complete, UGI aims to grow its dividend by around 4% annually starting in 2027.

Both Black Hills and UGI come with more risk than larger peers but offer elevated dividend yields. Their strong dividend histories and growth potential make them attractive options for income-seeking investors. Additionally, these utilities are addressing environmental concerns by investing in renewable energy projects and improving energy efficiency.

In conclusion, Black Hills Corporation and UGI Corporation are two no-brainer high-yield utility stocks to consider for less than $200. Their consistent dividend payouts, growth potential, and alignment with environmental concerns make them compelling investment options in today's market.