Investopedia: Utilitarian Dividends

It is hardly controversial or innovative to look for quality dividend-paying stocks in the utility space. These companies typically operate as monopolies in their respective regions, and regulators are generally quite willing to grant rates to utility operators that all but ensure solid dividend payouts. That does not mean, though, that the entire industry is uniform and undifferentiated. As with any sector, investors do well to pick and choose among the best options available for their portfolio needs. (For more, see Trust In Utilities.)

Consolidated Edison (NYSE:ED)  
Con Ed is a staple on lists of quality dividend-paying utility companies. Con Ed is the utility that provides electricity, gas and steam to New York City, and the company has a long dividend-paying history and a very secure corporate structure. Today's 4.5% yield is above the industry average, as is its payout ratio. Dividend growth and return on assets (ROA) have been below average, but Con Ed is a strong choice as a cornerstone utility holding.

CH Energy Group (NYSE:CHG)  
CH Energy, the holding company of Central Hudson Gas & Electric, is the electricity and gas distributor for much of upstate New York, as well as operating cogeneration and ethanol operations in other states. Paying a 4.1% dividend yield today, the company could be in position to raise the payout in a year or two. Like Con Ed, CH Energy's payout is above average and the ROA is below average, but the financial stability looks good. (For more, see Dividend Facts You May Not Know.)

Please click the link below for the full piece:
http://stocks.investopedia.com/stock-analysis/2011/Utilitarian-Dividends-ED-CHG-EXC-NST-SO-EONGY-CVA0513.aspx

Note: It should be Southern Company, not Southern Energy. I'll make sure that correction gets made. I don't know why, but I keep making that mistake...