PPL: Payout ratio
PPL Corporation’s (PPL) payout ratio in 2016 was ~54%, which is lower than its five-year historical average of 61%. Utilities typically give away large portions of their profits to shareholders in the form of dividends. Duke Energy (DUK) and Georgia-based Southern Company (SO) had payout ratios of 85%–90% last year.
PPL’s much lower payout ratio shows that a large share of profits is being used for capital investments and future growth. Florida-based renewables giant NextEra Energy (NEE) had a payout ratio of 55% last year.
You can compare the dividends of the top utilities (XLU) in Which Utility Stock Offers the Highest Potential Gain—NEE, DUK, or SO?