Most sold short utility dividend stocks originally published at "long-term-investments.blogspot.com". Today I like to look at the most shorted dividend stocks from the utility sector. I observed only stocks with a market capitalization over USD 300 million and a float short ratio over 5 percent.
Only eight companies have a capital stake with more than 5 percent of short sellers. Utilities are very unpopular in terms of borrowing shares and selling them with hope to cause a stock crash.
I often told that one of the characteristics of a utility stock is the stability. But the price you pay is the low growth and high debt. The capital intensive business model doesn’t allow it to expand the balance sheet without capital increases.
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