Wednesday, June 19, 2013

Recent Buy - Piedmont Natural Gas (PNY)

This week I purchased more Piedmont Natural Gas (PNY). Piedmont Natural Gas Company, Inc., an energy services company, engages in the distribution of natural gas to residential, commercial, industrial, and power generation customers in North Carolina, South Carolina, and Tennessee. It also operates energy-related businesses, including unregulated retail natural gas marketing, regulated interstate natural gas storage, and intrastate natural gas transportation.

I used $1100 of new capital to purchase 32 more shares at $34.31 which added $38.44/year to my dividend income.

As you can see from the chart below PNY has been able to limit stock depreciation even during the last two recessions which is one reason I like PNY so much. I like to think of PNY as a defensive stock.

PNY currently has a P/E ratio of 17.87 with a 3.60% dividend yield and has a long tradition of consistent dividend growth although the growth is a bit lower than I like at just under 5% growth but that's not too shabby.


  1. I wouldn't mind adding another utility, I'll have to take a look at PNY. All I know is that they are a dividend champion. That's pretty impressive for a utility.

    1. It's had quite a steady history for sure. Some other natural gas plays worth looking at are WGL and NWN. Both are also dividend champions.