Mon, May 11, 12:19 PM
- Electric utility stocks look more attractive after a 10%-plus decline since late January, with total annual return potential of 8%-9% in the next few years, according to a Barron's weekend analysis.
- "The relative attraction of utilities has increased in an environment of slower economic growth, when earnings growth is being suppressed by a stronger dollar and energy prices,” Bernstein utilities analyst Hugh Wynne, favoring two California utilities, PG&E (NYSE:PCG) and Edison International (NYSE:EIX), because of above-average growth and a favorable regulatory environment.
- "Utilities and the overall market may provide the same total return, but one offers a lower-risk package,” says Credit Suisse utility analyst Dan Eggers, who is partial to American Electric Power (NYSE:AEP), NextEra Energy (NYSE:NEE) and PG&E.
- Also discussed: SO, ED, DUK, D.
Thu, May 7, 2:31 PM
- The U.S. Energy Department gives final approval for Dominion Resources (D +0.5%) to export liquefied natural gas from its $3.8B Cove Point plant in Maryland.
- The terminal is authorized to export LNG up to the equivalent of 770M cf/day of natural gas for a period of 20 years.
- At the same time, the Sierra Club and other groups file suit in the D.C. Circuit court over the FERC's recent decision to approve the terminal.
Mon, May 4, 2:59 PM
- Dominion Resources (D +0.4%) edges higher after Q1 operating EPS of $0.99 fell from $1.04 a year ago but came in at the high end of its expectation for $0.85-$1 in per-share profit.
- D attributed the decline mostly to the absence of a gain on asset sales to Blue Racer, which knocked $0.06 off the bottom line, with lower merchant generation margins and a higher effective tax rate as other factors.
- Dominion Virginia, which provides electric service to ~2.5M customers, was the company’s best performer in Q1, with profit rising to $140M from $131M a year earlier; Dominion Generation was the biggest drag, with profit falling ~9% to $282M.
- D reaffirmed guidance for FY 2015, seeing EPS of $3.50-$3.85 vs. $3.69 analyst consensus estimate, but issued downside guidance for Q2, seeing operating EPS of $0.65-$0.75 vs. $0.79 consensus.
Mon, May 4, 7:33 AM
Sun, May 3, 5:30 PM
Fri, Apr. 24, 2:36 AM
- Asian shares took a breather today following a solid week, unmoved by the record session for tech stocks on Wall Street and Nasdaq's milestone.
- Yesterday, the Nasdaq closed 0.4% higher at 5,056, finally surpassing its tech-boom peak of 5,048 set in March 2000.
- Barclays economists point to downside risks of Chinese growth and inflation: "We expect the slowdown in growth to stretch into the June quarter before a pick-up in momentum in the September and December quarters, which assumes stepped-up policy easing measures."
- Nikkei -0.8%; Shanghai -1%
- ETFs: FXI, DXJ, EWJ, ASHR, CAF, YINN, KWEB, PGJ, GXC, FXP, HAO, YANG, TAO, CHIX, PEK, CHIQ, CQQQ, DFJ, MCHI, QQQC, DBJP, NKY, XPP, YAO, EZJ, JPNL, DXJS, EWV, ASHS, YXI, CN, CHXF, FCA, CNXT, CHNA, CHII, CHIE, ECNS, SCJ, EWHS, CHIM, HEWJ, JSC, ITF, KBA, KFYP, JPP, QJPN, FJP, JPMV, DXJT, DXJC, DXJR, AFTY, DXJH, JHDG, DXJF
Thu, Apr. 16, 9:59 AM
- Dominion Resources (D -1.3%) says it has purchased a 20 MW solar farm in Georgia from HelioSage Energy for an undisclosed sum.
- The utility says the Richland Solar Center should begin generating electricity this year, and Southern Co.’s Georgia Power utility unit has agreed to buy the power plant’s output under a 20-year contract.
- Dominion says it now has 364 MW of solar capacity in operation or under construction, and expects to have 625 MW in service by the end of 2016.
Wed, Apr. 1, 8:16 AM
- Dominion Midstream Partners (NYSE:DM) agrees to acquire Dominion Carolina Gas Transmission from Dominion Resources (NYSE:D) for ~$495M.
- DM says the deal supports its intention to grow distributions to unitholders at a compounded annual growth rate of ~22%/year through the end of the decade.
- DM expects the addition to be immediately accretive to its distributed cash flow per unit.
Mon, Feb. 9, 11:21 AM
Fri, Feb. 6, 4:12 PM
Thu, Feb. 5, 5:35 PM
Wed, Jan. 28, 7:15 PM
- Merrill Lynch makes the case in a new report that many fundamentals still favor keeping a position in the utilities sector even after a period of gains, and 24/7 Wall Street screened for the firm's top five Buy-rated utilities with the highest yields.
- The list is headed by Edison International (NYSE:EIX), which makes Merrill's US 1 list; EIX raised the quarterly dividend paid to shareholders by 17.6% back in December, signaling a strong commitment to investors.
- Dominion Resources (NYSE:D) is expected to grow its dividend by 7% this year, in line with the past four; the report says many Wall Street analysts believe new EPA regulations actually could provide a boost for the company.
- Also named: AES, PPL, UIL.
Sat, Jan. 24, 8:25 AM
- In a low-yield world, the newly launched iBillionaire High Dividend Index - which tracks the trading moves of 25 investing-savvy billionaire investors such as Stanley Druckenmiller, James Dinan and Nelson Peltz - actually lives up to its name with a dividend yield of 5.34%.
- At 24%, the index has a high allocation of energy shares, including OXY, TRP, CNP, COP, BP, ATLS, CVI, WMB, APL, RIG and ARP.
- Also worth noting is that the index contains some high-yielding mortgage REITs, an area most investors hate right now but where billionaires seem to find value; examples are NRF, AGNC and CIM.
- No mutual fund or ETF tracks this index, but it offers a fishing pond of income investment ideas to research further.
- The top 20 holdings: TLM, CVC, GM, TIME, AEE, D, STAY, KMI, TROX, EXC, STNG, PPL, IRM, PFE, KKR, KAR, F, MIC, LO, ABBV.
Nov. 26, 2014, 12:42 PM
- A new report from BofA Merrill Lynch stays positive on the top utility stocks for the rest of the year and 2015, offering five recommendations for utilities paying high current dividends and expected to raise dividends significantly over the coming years.
- The firm sees Dominion Resources (NYSE:D), which currently pays a 3.3% dividend, growing its dividend 7% this year, in line with the last four; many analysts think the new EPA bill may actually provide a tailwind for the company.
- Also suggested: AEP, PCG, UIL, PPL
Nov. 12, 2014, 2:14 PM
- Utility stocks, among the year’s top performing sectors in the market, are sharply lower today - a bad sign, says Weeden & Co. head researcher Michael Purves, who believes now is the time to reduce or hedge utility holdings such as the Utilities Select Sector SPDR Fund (XLU -1.9%).
- Ultra-low bond yields have made utility stock payouts look good by comparison., but valuations have been moving up; Purves says the rally has put XLU’s P/E ratio for the next 12 months at 17.4x, near a 10-year high.
- Investors ought to “start to take profits, given the run was getting long in the teeth,” Purves writes.
- The top 10 XLU holdings are all lower today: DUK -2.5%, NEE -1.7%, D -1.9%, SO -1.4%, EXC -2.8%, AEP -2%, SRE -1.7%, PPL -1.8%, PCG -1%, PEG -2.8%.
- Other ETFs: IDU, VPU, UPW, RYU, FUTY, FXU, PUI, SDP
Oct. 31, 2014, 2:57 PM
- Dominion (D -1%) submits a request to the FERC to begin an environmental review of the proposed $4.5B-$5B Atlantic Coast Pipeline.
- JV partners Dominion, Duke Energy (NYSE:DUK), Piedmont Natural Gas (NYSE:PNY) and AGL Resources (NYSE:GAS) plan to build and own the pipeline, which would supply North Carolina and Virginia with 1.5B cf/day of natural gas from the Marcellus and Utica shale basins of West Virginia, Pennsylvania and Ohio.
- Dominion earlier reported Q3 earnings that came in below expectations and revenues fell 11% Y/Y, as the utility said its service territory experienced one of the mildest summers in the last 30 years.
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