Should you invest in NFG (Natural Fuel Gas)

Natural Fuel Gas operates a range of energy assets and has outperformed the S&P 500 by more than a factor of 5 over the past year. Their business model is broken down into two parts; one focuses on providing utility services whereas the other delves into exploration and production assets. This integrared business model has…

Natural Fuel Gas operates a range of energy assets and has outperformed the S&P 500 by more than a factor of 5 over the past year. Their business model is broken down into two parts; one focuses on providing utility services whereas the other delves into exploration and production assets.

Courtesy of Yahoo

This integrared business model has resulted in dividends being paid to investors consistently for the past 121 years. The dividend yield sits at a level of 2.6%. Though this is not a staggering figure, it is a reliable source of income that keeps in line with inflation.

The company has a P/E ratio of 9, sitting at the bottom end of the utility sector. It could therefore be a good idea for investors thinking about diversifying their portfolio to include the energy market to invest in this company.

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