The Southern Company (SO), PPL Corporation (PPL), Dominion Resources, Inc. (D) & This Past Week in Utilities

From dividend increases to Earth Day celebrations, utilities have been busy this week. Here’s what you need to know to keep your portfolio’s profits pouring in:

The Southern Company (NYSE:SO)Electrifying Earth Day
Several utilities took the opportunity of Earth Day (Monday) to espouse environmental efforts. The Southern Company (NYSE:SO) loaded on 139 MW of solar and 250 MW of wind to its energy portfolio. The utility currently produces around 1,350 MW of generation from solar, hydropower, biomass, and landfill methane gas, equivalent to around 2.9% of its total capacity.

Duke Energy Corp (NYSE:DUK) released its sustainability report, updating shareholders on its $9 billion modernization project. The utility expects to retire 6,300 MW of coal capacity over the next few years and expects to own or purchase 6,000 MW of wind, solar, or biomass power by 2020.

PPL Corporation (NYSE:PPL) celebrated Earth Day with the opening of a unique “clean coal” facility that recovers around 300,000 tons of gypsum mineral annually to be used in fertilizers. “Innovative projects like this show how coal has and will continue to be a major contributor to the economic vitality of Kentucky and of the U.S., not just in the energy sector, but in science and innovation and now agriculture,” said Senate Minority Leader Mitch McConnell (R-Ky.) at the plant’s grand opening. In the next five years, PPL Corporation (NYSE:PPL) expects to invest around $6 billion in its system.

It’s earnings season
In the blink of an eye, Q1 2013 is here and gone. Southern reported earnings this week, hitting sales expectations but missing slightly on earnings. Any longer-term progress was negated by a $333 million after-tax charge for increased construction costs at a new power plant. The company increased its dividend last week for the 12th year in a row, calling into question the sustainability of its current cash flow.

After upping its dividend earlier in the week, American Electric Power Company, Inc. (NYSE:AEP) reported earnings on Friday, beating sales estimates and matching earnings expectations. Lackluster industrial demand and impending deregulation in Ohio are trouble spots for the utility, but overall rate increases and new transmission agreements mean that sustainable income isn’t gone yet.

Dominion Resources, Inc. (NYSE:D) disappointed this quarter, missing on sales and reporting EPS 8.8% below analyst expectations. Regulated sales slumped, but $25 million in EBIT from the utility’s Blue Racer midstream joint venture kept earnings from evaporating. Looking ahead, the utility hopes to save $100 million on operating expenses for fiscal 2013 as it continues to grow its transmission business.

Stay current on electricity
The world of utilities is changing fast, and dividend stocks aren’t the stable stalwarts they once were. Be sure to check back weekly for the latest on your portfolio’s moves, and you’ll be well on your way to electrifying earnings.

The article This Week in Utilities: Dividend Increases and Earnings Reports originally appeared on Fool.com.

Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Dominion Resources, Exelon, and Southern.

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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!