At a first glance, boasting a dividend yield of 5.02% a PE ratio of 17.9 (forward PE of 14.49) and a beta of .58 Hawaiian Electric Industries (HE) looks like a good addition to an income portfolio.
However there are some market conditions that may make Hawaiian Electric Industries HEI not worth the risk. The threat of distributed solar cutting into their business and high debt may force this company to cut their dividend in the near future and result in a lower stock price.
The Threat from Distributed Solar
Distributed solar presents risks to HEI whose residential rates are 35c/ kWh on the low end in Oahu and average as high as 46 c/kWh on Lanai.1 In...