Are You An Income Investor? Don’t Miss Out On Vectren Corporation (NYSE:VVC)

Yolanda Lovett
Updated

There is a lot to be liked about Vectren Corporation (NYSE:VVC) as an income stock, over the past 10 years it has returned an average of 4.00% per year. The company currently pays out a dividend yield of 2.52% to shareholders, making it a relatively attractive dividend stock. Should it have a place in your portfolio? Let’s take a look at Vectren in more detail. See our latest analysis for Vectren

Here’s how I find good dividend stocks

When researching a dividend stock, I always follow the following screening criteria:

  • Is its annual yield among the top 25% of dividend-paying companies?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has the amount of dividend per share grown over the past?

  • Does earnings amply cover its dividend payments?

  • Will it have the ability to keep paying its dividends going forward?

NYSE:VVC Historical Dividend Yield June 22nd 18
NYSE:VVC Historical Dividend Yield June 22nd 18

How well does Vectren fit our criteria?

The company currently pays out 64.48% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a payout ratio of 59.54%, leading to a dividend yield of 2.74%. Furthermore, EPS should increase to $2.9.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of VVC it has increased its DPS from $1.3 to $1.8 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock.

Relative to peers, Vectren generates a yield of 2.52%, which is on the low-side for Integrated Utilities stocks.

Next Steps:

Considering the dividend attributes we analyzed above, Vectren is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three relevant aspects you should further research:

  1. Historical Performance: What has VVC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Vectren’s board and the CEO’s back ground.

  3. Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.