jarco

Five Companies Worth Researching This Weekend

Florida's upfront power plant financing is coming under fire and likely will fade or be drastically realigned with other states utility regulators.

FPL went after wind and other alternatives because it's boxed in territorially. Geographically surrounded by oceans water and PGN to the north, its unable to merge/expand to obtain synergy efficiencies unlike almost all other utilities over the past decade plus. Since alternatives are so heavily dependent upon favorable tax treatments, long term profitability/viability must be questioned.


On Nov 02 09:35 AM jerrydd wrote:

>
> If a utility is wanted FPL is a far better choice. It's down because
> it's utility division is down in Fla but that will change and it
> is the largest wind producer in the US among other Re and nuke. It's
> getting 2 new nukes for free as Fla is making it's customers pay
> for them up front.

Six Companies with Sustainable Dividends

Good focused article. Thanks for your efforts.

Your comment on AT&T payout ratio notwithstanding, an important aspect worth considering is restainability of EBIDT cash flow. Aside from Chub (with typical insurance/finance duribility questions), all of your list is affected by variable consumer sentiment spending and a lack of "hard' assets except AT&T.

The latter aspect limits competition whereas PG, CLY, PEP, and to a lesser extent MCD, continue to be pounded by price competition and spending options from the consumer day in and day out.

Wireless continues to grow and likely wiil be positive net hard line losses. Same applies to VZ. I would suggest at even 75% payouts, utilities including telcos should be able to sustain current better than average dividends. On balance, higher current dividends will cumulatively exceed lower but growing alternatives for quite some time into the future.