Why PPL’s Total Returns Have Underperformed Its Peers



Total returns

Despite being the top-yielding utility, PPL (PPL) has underperformed its peers in terms of total returns in 2018 due to its weak market performance. PPL’s total returns were at -1.4%—compared to broader utilities’ (XLU) total returns near 5% in 2018. We considered the stock performance and dividend payments during a particular period to calculate the total returns.

PPL tra

Duke Energy’s (DUK) total returns have been flat, while Southern Company (SO) has returned close to -3% in 2018. Broader markets have returned 8% this year.

So far, utilities largely underperformed broader markets due to the Fed’s aggressive stance on rate hikes. However, trade war concerns fueled utilities’ rally in the last few months.

To learn more, read Update on Utilities: Performance in the Week Ending August 10.

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