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UGI Corporation — 138 Years Of Steady Dividends
High interest rates are creating unique investment opportunities.
Stocks that were trading at premium valuations are now dipping to multi-year lows as Wall Street rushes into treasury bills and trendy AI investments.
UGI Corporation ($UGI) was a high-flying utility stock. But, the company has fallen out of favor and is down over -37%, year-to-date.
As such, UGI stock is now yielding 6.24%. And, the company is trading at a “bargain basement” price to earnings ratio of 8.75. In this analysis, we’ll look at what UGI Corporation does. And whether this is a “hidden gem” investment, or a dividend value trap.
What Does UGI Corporation Do?
Utility stocks are typically stable because they provide an essential services to a localized market. This helps shield them from international conflicts.
The York Water Company, for instance, has paid uninterrupted dividends since 1816. The Civil War, both World Wars, the 1970’s energy crisis, etc… had no effect on this business — because York Water only services a handful of municipalities in Pennsylvania.
