UGI Corporation (NYSE:UGI)

UGI Corporation is a utility company based in Pennsylvania, constituted in 1882. It markets and distributes propane, butane, natural gas and electricity. In particular, the company supplies natural gas to 544,000 customers. and electricity to 60,000 customers in Central Europe and Pennsylvania. In 2007, the company expanded its operations abroad, in a joint venture with Germany's Progas, and the acquisition of an LPG distributor in Poland. The latest acquisitions and international exposure have contributed to UGI's growth, increasing its customer density and influence in Europe. Poland, for example, has the second-highest LPG growth rate in Europe and the second-largest automotive LPG market in the world.

UGI is trading at an attractive price, both in terms of earnings and dividend. The PER stands at 14.27, while thehe yield was a comfortable 3,60%, slightly above the long-term average (3.42%). Average annual dividend growth is good, at 10.46%. The company has increased its shareholders' pocket money for 19 consecutive years. The distribution ratioAt 50%, there's still room for further dividend increases in the future, even in the event of a difficult period.

The stock has very low volatility, at 8.16%, even lower than the average for our portfolio. The beta, at 0.43, also indicates that UGI is highly insensitive to market fluctuations. This low correlation with the S&P can be seen in the chart below, which shows a fine progression since the start of the millennium, while its benchmark market has been doing nothing but suffering over the same period.

The value of the stock in CHF has little correlation with the USD/CHF, with a $risk of 0.05.

Like NJR, UGI is a stock that is little influenced by the equity or currency markets. The yield, the distribution ratio and dividend growth are good. On the other hand, the history of successive increases in shareholders' pocket money is still relatively young. UGI should be regarded as a talent in the making (despite the company's age), to be watched with a view to a possible future purchase.

Sources: wikipedia, wikinvest, dividendes.ch