Pinnacle West: High Yielding Utility Faces A Challenging Time

Summary

  • Pinnacle West Capital Corporation has delivered the goods to income investors over the last decade.
  • The 5% compounded dividend growth has matched its earnings.
  • The recent regulatory headwinds are quite severe, and we take a look at whether the dividend is at risk.
  • I do much more than just articles at Conservative Income Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Phoenix, Arizona skyline at dusk

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Pinnacle West Capital Corporation (NYSE:PNW) is an electric holding company based in Phoenix, Arizona. Being a holding company, it conducts its business via subsidiaries. Of its four wholly owned subsidiaries, the 1920 incorporated APS does the heavy lifting and almost

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This article was written by

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Conservative Income Portfolio is designed for investors who want reliable income with the lowest volatility.


High Valuations have distorted the investing landscape and investors are poised for exceptionally low forward returns. Using cash secured puts and covered calls to harvest income off value income stocks is the best way forward. We "lock-in" high yields when volatility is high and capture multiple years of dividends in advance to reach the goal of producing 7-9% yields with the lowest volatility.

Preferred Stock Trader is Comanager of Conservative Income Portfolio and shares research and resources with author. He manages our fixed income side looking for opportunistic investments with 12% plus potential returns. 

Disclosure: I/we have a beneficial long position in the shares of PNW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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