Yesterday, 12:26 PM
- Dynegy (DYN -2.1%) and NRG Energy (NRG -5.6%) are sharply lower after the FERC declined to approve a capacity performance plan submitted by the PJM Interconnection consortium and asked for answers to additional questions about the initiative.
- PJM operates a wholesale electricity market in the eastern U.S.; DYN is involved in the PJM and is looking to boost its share within the Regional Transmission Organization with proposed asset purchases, and a small part of NRG's capacity is within PJM.
- Deutsche Bank analyst Jonathan Arnold notes that FERC did not reject the proposal, but says FERC's action prolongs uncertainty for investors in the electric utilities that belong to PJM, which also include Exelon (EXC -1.8%), Public Service Enterprise (PEG -1.9%), American Electric (AEP +0.2%), PPL (PPL -0.4%) and FirstEnergy (FE -1.3%).
Tue, Mar. 17, 6:37 PM
- Despite the prospect of a Fed rate hike, patient investors should stick with utility stocks for their attractive yields, regular earnings and dividend growth, two analysts tell CNBC.
- While higher rates may look foreboding, Hilliard Lyons analyst David Burks says recent history shows the sector could still outperform, noting that electric utilities beat the S&P 500 "by a fairly wide margin" during the 2004-06 period of higher rates when the Fed raised rates 16 times.
- Morningstar's Travis Miller thinks the sector's short-term performance will continue to reflect interest rate movements, but that investors willing to hold utilities two years or more can get strong absolute returns.
- Burks' favorite income pick is PPL, his top growth pick is NEE, and he likes AEP for total return; Miller's picks include SO, which he says has come down substantially and is now trading a discount, plus DUK and ITC.
- ETFs: XLU, IDU, VPU, RYU, FUTY, UPW, PUI, FXU, SDP
Fri, Feb. 27, 10:40 AM
Thu, Feb. 5, 7:07 AM
Wed, Feb. 4, 5:30 PM
- ABB, ADS, AINV, AMSC, APO, ARW, AZN, BCE, BCO, BDC, BDX, BLL, BR, CFX, CHTR, CI, CMI, COTY, CSL, DFT, DLPH, DNKN, EL, EQM, EQT, ETR, FBP, FIS, GLT, GPI, GPK, GRA, GRUB, ICE, IT, IVC, KORS, LAZ, LIOX, LQDT, MDSO, MMP, MMS, MSCI, NGD, NUS, ODFL, OZM, PBH, PM, PPL, PRGO, PRLB, PTEN, RFP, RSTI, SBH, SIRI, SNA, SNCR, SPH, SQNS, TDC, TE, TEVA, TW, USG, UTEK, VLP, VMC, VSH, XYL
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.
Mon, Jan. 5, 11:58 AM
- PPL Corp. (PPL -1.8%) is downgraded to Hold from Buy with a $37 price target, down from $39, at Jefferies, which cites lower assumed earnings power at the company's U.K. businesses.
- Due to the strong U.S. dollar and the loss of incentive revenues as the company's rates are reset in the new rate plan, the firm says it is lowering its 2016-17 earnings estimates.
- Jefferies believes PPL shares already include the upside from the proposed spinoff of Talen Energy.
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. 21, 2014, 1:37 PM
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
Nov. 4, 2014, 7:01 AM
Sep. 12, 2014, 9:11 AM
- PPL Corp. (NYSE:PPL) welcomes yesterday's ruling by the U.S. Court of Appeals for the Third Circuit that a New Jersey law promoting construction of new power plants by subsidizing development of new generation in the state is invalid because it oversteps the state's regulatory authority.
- The judges ruled that the federal government has exclusive control over interstate rates for capacity payments to electric power generators, upholding a decision in a lawsuit filed by PPL EnergyPlus and other competitive electricity suppliers after the legislation was enacted in 2011.
Sep. 4, 2014, 6:55 PM
- PPL Corp.'s (NYSE:PPL) says its agreement to sell its hydroelectric facilities to NorthWestern Energy (NYSE:NWE) cleared a major milestone when the Montana Public Service Commission voted to prepare an order approving NWE's request to purchase the facilities.
- The $900M deal includes PPL Montana's 11 hydroelectric power plants, which have a combined generating capacity of more than 630 MW, as well as the company's Hebgen Lake reservoir.
Aug. 22, 2014, 12:06 PM
Jul. 31, 2014, 8:58 AM
- PPL Corp.'s (NYSE:PPL) Q2 earnings and revenues easily beat Wall Street estimates despite substantial Y/Y declines in both.
- Per-share earnings from ongoing operations in the supply segment - primarily the competitive electricity generation and energy marketing operations of PPL Energy Supply - rose to $0.06 from $0.01 a year ago, benefiting from unrealized gains on commodity positions and higher eastern U.S. margins.
- Earnings from ongoing operations from PPL's U.K. regulated operations fell $0.02 to $0.33/share, mostly due to higher U.S. income taxes and the adverse impact of weather on utility revenue.
- Raises its FY 2014 EPS guidance to $2.20-$2.40 from earlier $2.15-$2.30, citing the strong performance of the competitive energy supply business through the first half of the year.
- Also proposes a major new regional transmission project it says would enhance electric grid security while lowering electricity costs for consumers in the mid-Atlantic region.
- PPL +0.6% premarket.
PPL vs. ETF Alternatives
PPL Corp is an energy and utility holding company through its subsidiaries, is engaged in the generation and marketing of electricity in the northeastern and western U.S. and in the delivery of electricity in Pennsylvania and the U.K.
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