5-Star Dividend Stocks Poised to Outperform: PSEG

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power company Public Service Enterprise Group (NYSE: PEG  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PSEG and see what CAPS investors are saying about the stock right now.

PSEG facts

Headquarters (founded)

Newark, N.J. (1985)

Market Cap

$14.9 billion

Industry

Multi-utilities

Trailing-12-Month Revenue

$10.0 billion

Management

Chairman/CEO Ralph Izzo

CFO Caroline Dorsa

Return on Equity (average, past 3 years)

14.9%

Cash/Debt

$798.0 million / $8.3 billion

Dividend Yield

4.8%

Competitors

Consolidated Edison (NYSE: ED  )

Delmarva Power & Light Company

FirstEnergy (NYSE: FE  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 348 members who have rated PSEG believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, kurtdabear, tapped the stock as a particularly timely bargain pick:

[PSEG] has been artificially beaten down recently by the events surrounding Superstorm Sandy, but longer term, the company has a lot of initiatives in place to help it grow earnings. Its Sandy losses are insured and short-term and will soon be forgotten. Meanwhile its growing transmission and generation segments should add nicely to future earnings. ... [PSEG] also does not hesitate to raise its dividends as earnings allow. One caveat: If the Feds lose control of interest rates or change their low-rate policy, be ready to bail out because that's always bad for utilities.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, PSEG may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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