Southwest Gas: Reasonable Total Return And A Growing Service Area

Power Hedge
Investing Group Leader

Summary

  • Southwest Gas Holdings is a stable natural gas utility serving Arizona, Nevada and parts of California.
  • The populations of Nevada and Arizona are both growing, providing the company with an increasing customer base and revenue.
  • The company is positioned for a 9% to 11% total average annual return over the next three years.
  • The company has a reasonably strong balance sheet, and it is aggressively paying down its debt.
  • The valuation is not quite as good as its peers, but Southwest Gas has a higher yield to compensate.
  • Looking for a helping hand in the market? Members of Energy Profits in Dividends get exclusive ideas and guidance to navigate any climate. Learn More »
Natural Gas Meter

DonNichols

Southwest Gas Holdings (NYSE:SWX) is a regulated natural gas utility that primarily serves the city of Las Vegas but also has operations stretching into Arizona and California. The utility sector in general has long been among the favorites for

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This article was written by

Power Hedge
15.65K Followers

Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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