Let’s see whether or not FirstEnergy’s (FE) higher yield enabled higher returns. In the last 12 months, FirstEnergy returned 30%, while it returned 34% in the last three years. We have considered stock appreciation and dividends paid in a particular period to calculate the total returns. In comparison, utilities (XLU) at large returned 21% in the last year and 34% in the last three years.
Utilities versus the S&P 500
Utilities beat the broader markets in the past year but underperformed the broader markets in the past three years.
FirstEnergy’s stable earnings might enable a healthier dividend profile and a less volatile market performance, which could bode well for the total returns going forward.
The S&P 500 returned 6% in the past year and 47% in the last three years.
To learn how top utilities stand in terms of total returns in the long run, read NEE, SO, DUK, and D: Analyzing Top Utilities’ Total Returns.