You are comparing the dividend attractiveness of two utility companies, PowerGen and ElectricCo, for income-oriented investors.

Requirements:

1. PowerGen pays an annual dividend of $2 per share, and its market price per share is $40. ElectricCo pays an annual dividend of $2.50 per share, and its market price per share is $50.
2. Calculate the dividend yield for both companies.
3. Discuss which company offers a higher dividend yield to investors.