How PPL’s Dividend Profile Looks Compared to Its Peers



Dividend yield

PPL Corporation (PPL) is one of the top-yielding utilities in the S&P 500 Utilities Index. It’s currently trading at a dividend yield of 6%, while broader utilities’ (XLU) average yield is 4.2%. PPL’s superior yield is mainly due to the stock’s steep fall recently.

PPL has declared a quarterly dividend of $0.41 per share, which will be paid on July 2. Considering the annualized dividends for 2018, PPL has increased its dividend per share 4% compared to 2017. Its dividend growth is close to the lower end of the industry’s average dividend growth of 4%–6%.

PPL yld

Southern Company (SO) stock is trading at a dividend yield of 5.5%, while Duke Energy (DUK) is trading at a dividend yield of 4.8%.

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Dividend growth

PPL’s per-share dividends rose 1.8% compounded annually over the last five years. In comparison, utilities at large increased their dividends per share by 4% compounded annually during the same period.

Southern Company and Duke Energy managed to raise their per-share dividends 3.4% and 2.9%, respectively, compounded annually in the last five years.

PPL’s EPS growth will likely remain at 5%–6% through 2020, which is well within the industry average. Its targeted dividend growth will most likely be at a similar level.

NextEra Energy (NEE) and Dominion Energy (D) are among the few largest and fastest-growing utilities in the industry. Be sure to read which one offers a better dividend profile in Dominion and NextEra Energy: Which Dividend Is More Attractive?


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