CPFL Energia S.A. (CPL) of Brazil and National Grid plc (NGG) of UK current have dividend yields of over 6%.

CPFL Energia S.A. (CPL earnings growth is about 35% and the revenue growth is about 10%. Last year the company had a total revenue of $5.8B. It is one of the highly profitable electric ) is an electric utility with 6.4 Million customers. The average annualutilities with a net margin of 12.60%. The current dividend yield is 7.40%.

Uk-based National Grid(NGG) operates both in the electricity and natural gas business. In the UK, it delivers gas to 11 million homes. The US division of National Grid delivers electricity to 5 million customers in Massachusetts, New Hampshire, New York and Rhode Island. Average annual earnings growth is flat in the last 5 years and the profit margin is about 6%. NGG pays a dividend of 6.87%. On October 15, S&P; put a Buy recommendation on National Grid’s ADS.

S&P; stated:
” We continue to believe that NGG’s low-risk regulated revenues and dividend policy make the ADSS attractive for above-average total return. We expect the board to implement an 8% increase in the dividend, which currently yields about 6.4%, and above the average yield of about 5.0% for U.S. peers. We still see EPS of $3.80 for FY 10 (March) and $3.95 for FY 11. Assuming a weighted average cost of capital of 4.9% and terminal growth rate of 2.0%, we keep our 12-month target price of $53, reflecting a premium to U.S.-peers P/E of 13.9X our FY 10 estimate.”

With a juicy dividend of over 6% and possibility of a further increase in dividends NGG may be an attractive foreign utility stock now.