2 Incredibly Cheap High-Yield Utility Stocks to Buy Now

Group 1: Company Overview - Black Hills serves approximately 1.3 million customers across several states including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming, primarily as a natural gas and electric utility [1] - The company has a higher leverage compared to its peers, making it more susceptible to the impacts of rising interest rates in the near term [1][3] - Despite the leverage concerns, Black Hills maintains a strong financial position with an investment-grade credit rating [3] Group 2: Investment Potential - Black Hills offers a substantial dividend yield of 4.9%, which is significantly above the average for utility companies, making it an attractive option for income-focused investors [3][6] - The company has a strong history of dividend increases, being classified as a Dividend King, and is expected to grow earnings by approximately 4% to 6% annually [4] - The population in the regions served by Black Hills is growing at nearly three times the national average, which supports future earnings growth [4] Group 3: Comparison with Dominion Energy - Dominion Energy is characterized as a turnaround play with higher risk, while Black Hills is viewed as a stable, albeit less exciting, utility investment [6][10] - Dominion's current dividend yield stands at 5.4%, reflecting its ongoing business changes and focus on balance sheet strengthening [8] - Both companies are trading at a discount compared to their sector, with the average yield in the utility sector around 3% [11]