Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

PPL Corporation (PPL), Exelon Corporation (EXC): Soar Or Stumble?

Page 1 of 2

The last of the first-quarter earnings have hit investors’ inboxes, turning shareholders’ portfolios topsy-turvy. Let’s look at the latest influx to see if your dividend stocks are about to soar — or sink.

PPL Corporation (NYSE:PPL)
PPL Corporation (NYSE:PPL) reported earnings May 2, missing on sales expectations but managing to squeak past earnings estimates. Top lines have been tumbling across the sector, and PPL Corporation (NYSE:PPL)’s bottom line took a major hit when trimmed hedged wholesale power prices pushed its unregulated earnings down more than 50%.
Exelon Corporation (NYSE:EXC)

With natural gas’ recent price increase, bad hedges proved a common theme for unsuspecting utilities. Exelon Corporation (NYSE:EXC) took a one-time $235 million hit, but Exelon Corporation (NYSE:EXC)’s and PPL Corporation (NYSE:PPL)’s nuclear fleets will ultimately benefit from more expensive gas.

Ameren Corp (NYSE:AEE)
Ameren Corp (NYSE:AEE) also reported earnings May 2, missing on both top- and bottom-line results. But the utility is nearing the finish line of a massive business overhaul, and number crunching takes a back seat to strategy as Ameren Corp (NYSE:AEE) exits the competitive business and heads into regulatory waters.

With a successful $900 million asset sale to Dynegy Inc. (NYSE:DYN) in March, Ameren Corp (NYSE:AEE) has three leftover gas-fired energy centers it still needs to offload.

Its regulated division recently celebrated wins in its Missouri and Illinois transmission services, which should help to keep this dividend stock’s 4.4% yield sustainable for the foreseeable future.

Atlantic Power Corp (NYSE:AT)

Atlantic Power Corp (NYSE:AT) reported earnings on May 8, beating sales estimates and pulling in positive earnings for the first time since Q2 2011.

Atlantic Power Corp (NYSE:AT)’s stock had been beaten down around 60% since 2013, after dismal Q4 earnings and a severely slashed dividend left investors less optimistic about Atlantic Power Corp (NYSE:AT)’s future. Since then, Atlantic has closed down non-core assets, improved cash flow, decreased short-term debt, and advanced its renewable-energy portfolio.

At its current price, this dividend stock currently offers a 7.2% yield, and investors seem to be willing to give Atlantic another chance. I took a closer look at how its fundamentals, valuation, and business strategy can push its price back up. Its stock is cheap and its business looks better — but I’m not buying yet.

FirstEnergy Corp. (NYSE:FE)

FirstEnergy Corp. (NYSE:FE) reported earnings May 7, exceeding top- and bottom-line expectations. Unlike Atlantic, its priced-for-perfection dividend stock gave less punch to positive news, and investors aren’t elated with FirstEnergy Corp. (NYSE:FE)’s 1.6 debt-to-equity ratio.

Page 1 of 2
Loading Comments...