PPL Corporation (PPL) Earnings: 1 Dividend Stock Rocking Regulated Revenues

Page 2 of 2

Dividends and cash cows
With a 4.5% yield, PPL has earned its title as a dividend stock. The company has consistently upped its payouts, but investors should keep a close watch on PPL’s books. With $1.77 billion negative free cash flow expected for 2013, debt could become an issue if the utility encounters any unexpected charges.

In an increasingly competitive marketplace, it’s a relief to see PPL pumping up its regulated division, all the while winning crucial rate increases. Although its generation unit took a hit, rising natural gas prices should prove a net benefit to PPL Corporation (NYSE:PPL)’s nuclear and coal assets over the coming quarters.

Foolish bottom line
Despite less than stellar books, PPL’s Q1 results reaffirm the utility’s steady earnings. With a solid dividend and an increasingly competitive generation fleet, things are looking up for PPL’s profits.

The article PPL Earnings: 1 Dividend Stock Rocking Regulated Revenues originally appeared on Fool.com is written by Justin Loiseau.

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.The Motley Fool recommends Exelon and National Grid plc (NYSE:NGG) (ADR).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.



Page 2 of 2