Justin Paget Since my last coverage on Utilities Select Sector SPDR Fund ETF (NYSEARCA:XLU), the fund has remained marginally flat in terms of performance. However, the near-term outlook doesn’t look promising, and with this piece, I’m downgrading the XLU to a Hold rating, in line with a lower upside potential. Last time, I suggested that…
Gunther Fraulob NextEra Energy (NYSE:NEE) is an incredible dividend growth machine. The electric utility last declared a quarterly cash dividend of $0.515 per share, a remarkable 10% hike sequentially and $2.06 per share annualized for a 3.2% dividend yield. NEE has also guided to grow its dividend by at least 10% per year for the…
Bilanol Investment Thesis The American Water Works Company, Inc. (NYSE:AWK) is the largest publicly traded water utility in the United States. The utility provides water supply and wastewater management services to customers across the country through their regulated operations as well as servicing some military facilities too. AWK remains highly profitable and benefits from what…
Maximusnd For most of the last 15 months, we have held strongly negative views on DNP Select Income Fund (NYSE:DNP). This has generally worked out and the CEF has struggled to make headway in this timeframe. Seeking Alpha Since the “Strong sell” rating in October 2022, the CEF has underperformed the S&P 500 (SPY) by…
gerenme Background and Investment Thesis Dominion Energy (NYSE:D) may be just the tonic for income investors seeking the stability of a regulated electric utility with a high-yield cash dividend payout. Currently, shares yield about 6 percent and hold a reasonable go-forward potential for capital appreciation. On March 1, management completed an Investor Day presentation that…
Daniel Bosma/Moment via Getty Images NextEra Energy Inc. (NYSE:NEE) is an American energy company. Founded in 1925, NextEra Energy is now a $116 billion (by market cap) power utility giant that employs more than 15,000 people. By market cap, this is the largest utility holding company in the US. NextEra Energy reports results across three…
pixdeluxe NextEra Energy (NYSE:NEE) (NEP) reported a strong end to FY23 with both strength at the top line and durable EBITDA margin expansion, with total backlog growing to 20GW. The firm anticipates exceptional growth throughout the next 3 years and anticipates to grow the NEP distribution by 6% annually through 2027 and the NEE dividend…
Pituk Loonhong/iStock via Getty Images Please note all $ figures in $CAD, not $USD, unless otherwise stated. Introduction I recently covered Hydro One (H:CA) and suggested that the company was likely the worst regulated utility in Canada having higher leverage, a poor dividend yield, and an expensive valuation. Today, I’ll be covering another utility, ATCO…
Justin Paget Introduction With this article, I would like to expand the tickers I have so far covered on SA. However, the stock market is huge, so this year I made the choice to publish and integrate what I have done so far on SA with a niche that not many SA readers may know…
Michael Vi/iStock Editorial via Getty Images Shares of Sempra (NYSE:SRE) have been a poor performer over the last year, losing about 5% of their value. Higher interest rates have weighed on utilities and dividend-oriented stocks. While higher interest expense has had a negative impact on results, SRE has a strong growth position, which should enable…
Cn0ra/iStock via Getty Images Written by Nick Ackerman, co-produced by Stanford Chemist. Utilities have been struggling for over the last year due to the higher interest rate environment. However, we’ve already seen what can happen when risk-free rates start to ease up, which has seen a significant rebound from the October lows when Treasury rates…
AntonioSolano/iStock via Getty Images UGI Corporation (NYSE: UGI) is an attractive 36-year dividend champion utility company headquartered in King of Prussia, PA. being incorporated in 1882 and having an S&P credit reading of “A”. It can blow up your income with its current 6.9% yield with a nice potential for capital gains, but patience is…
Dragon Claws Written by Nick Ackerman, co-produced by Stanford Chemist. Reaves Utility Income Trust (NYSE:UTG) remains a popular closed-end fund with income investors. It’s one of only several CEFs that have an inception prior to the global financial crisis that has also never reduced its distribution. That means it has gone through the GFC and…
Alasdair Jones SSE plc (OTCPK:SSEZF), a UK-based utility company with an integrated presence in regulated electricity networks and renewable energy generation, has come a long way since its public battle with activist investor Elliott in 2021. In recent months, SSE has continued to make headway in disproving the notion that a renewables business needs to…
abadonian It’s certainly no secret that the utility sector has been beaten down by the market since the beginning of 2023. According to Morningstar, the “median 16.0 P/E (for utilities) is at its lowest since exiting the 2008-09 recession,” and the sector is now down 16.0% since the beginning of 2023. This has made many…
High voltage transmission tower deepblue4you/iStock via Getty Images What makes a dividend growth investing portfolio successful? The answer to this question is to arguably pick businesses that sell necessary goods and/or services to customers for which there is no substitute. One such service that fits this description quite well is electric utilities. That is because…
Alasdair Jones/iStock Editorial via Getty Images Dear readers/followers, Since my last article, SSE (OTCPK:SSEZY) hasn’t exactly been a fantastic performer. Then again, most of my utilities haven’t exactly been the “golden children” so far this year. They’ve underperformed quite a bit so far, and SSE is no exception to this rule. Does it bother me?…
strickke/E+ via Getty Images NiSource Inc. (NYSE:NI) is a regulated electric and natural gas utility that serves customers in six states throughout the Rust Belt and Appalachia. In several recent articles, such as this one, I discussed how utilities such as NiSource could be good holdings for now as there are a growing number of…
Justin Paget We present our note on EDP – Energias de Portugal (OTCPK:EDPFY), Portugal’s leading electric utility company. EDP offers an attractive earnings and dividends growth profile, combined with value crystallization through asset rotations in hydro, thermal, and renewables. Concerns over rising leverage and downward earnings revisions in renewables have put pressure on the share…
Matteo Colombo Introduction Georgia-based Southern Company (NYSE:SO) is a utility I’ve always liked as a high-yield play. However, in the past two years, I started to put it on top of my list, as I believe it’s one of the best utility companies money can buy. The company just achieved a major milestone, as Vogtle…