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Exelon's (EXC) dividend cut is a bad sign for income investors, Paul Ausick writes, citing the...
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Thursday, February 7, 2:50 PM ETExelon's (EXC) dividend cut is a bad sign for income investors, Paul Ausick writes, citing the forces that led EXC's move which exert a similar power over other utilities: higher depreciation and amortization expenses due to added capital spending, and a variety of costs - warmer weather, low electricity demand, tighter emission regulations - over which they have little or no control.
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Discriminating in picking high dividend and utility stocks!
What are some of your favorite picks? Mike
Whether we should continue to hold this stock hoping to
Recoup some of our losses? the market did not react
Enthusiastically to the announcement! One reason for the
Skepticism is EXC's theory that natural gas prices will
Rise year after year! And that therefore they will make more money off of this.This is a pipe dream and there is no evidence
This will occur! In fact it is more likely NG prices will remain
Very low as the administration fights to restrict it's development.
The only way EXC can win is if the US can pass a new
Carbon tax? This is also unlikely. I think we EXC losers
Should continue to discuss other utilities and whether
We should look to MLP's and other high yielders such as
REITS and Financials LLPs such as KFN.
EXC's demise at the very least makes it clear that there is
Nothing magic about utilities and might as the article suggest
Cause them to underperform in the short run as investors
Become overly suspicious about their returns! Mike