Currently, utility stocks on average offer a yield of 3%. Dominion Energy offers a dividend yield of 4.5%, while NextEra Energy offers a yield of 2.1%.
Southern Company (SO) stock had one of the best years in 2019. It gained almost 45%. The stock outperformed utilities at large that rose 22% last year.
After being in bankruptcy for almost a year, PG&E stock is trading comfortably close to $11 levels. So far, PG&E stock has fallen more than 50% in 2019.
Recently, Southern Company (SO) shifted to its top gear. Southern Company stock rose 2.3% on Tuesday—an increase for the fifth consecutive trading session.
Consolidated Edison has a dividend yield of 3.4%, higher than utilities’ average of 3%. It declared a quarterly dividend of $0.74 per share in October.
Last week, PG&E reached a settlement to resolve individual claims associated with wildfires in the last few years. The agreement is valued at $13.5 billion.
Recently, PG&E stock continued to rise. The stock has gained in seven of the last eight trading sessions. Collectively, the stock has risen more than 30%.
In today’s Get Real market newsletter, we took a closer look at a potential Tesla takeover and at Trump’s part in US steel. Plus, a rebound for Boeing.
This week, the Dow Jones Industrial Average Index (DJI) rose 1%. On a month-to-date basis, it has risen 3.8% and heading for the biggest gain since June.
Yesterday, a judge denied PG&E’s plea to reduce its current wildfire liability by dodging inverse condemnation, according to the San Francisco Chronicle.
Investors keep turning to defensives this year amid uncertainties in the broader markets. Some of the top utility stocks have outperformed their peers at large.
Renewables giant NextEra Energy (NEE) declared a quarterly dividend of $1.25 per share last month. It’s expected to pay a dividend of $5 per share in 2019.
Southern Company (SO), the top regulated utility, declared a quarterly dividend of $0.62 per share last month. The ex-date for the dividends is Friday.
The wild swings continued in PG&E stock yesterday. The stock gained another 13%. The company has come up with a compensation plan for wildfire victims.
Southern Company stock has slowed down after a 40% run this year. The utility is expected to release its third-quarter earnings by the end of this month.
Bankrupt utility PG&E lost more than 25% last week. The fall came after the bankruptcy court allowed a bondholder group to pitch their restructuring plan.
In the week that ended on September 27, the equity market saw another weekly decline. The S&P 500 index and Nasdaq-100 Index has declined by 1% and 1.8%.
Utility stocks soared as Treasury yields fell on September 24. The Utilities Select Sector SPDR ETF gained 1.2% while the S&P 500 tumbled 0.8% yesterday.
Last week, the top four utility stocks by market cap—NextEra Energy, Duke Energy, Southern Company, and Dominion Energy—touched new 52-week highs on Friday.
Among the top utilities, Southern Company’s 4.2% dividend yield beats the peer average of 3%. However, PPL’s yield is 5.6% and Dominion Energy yields 4.8%.
Utilities stayed strong as broader markets closed sharply down yesterday. The Utilities Select Sector SPDR ETF soared as investors turned to defensives.
Southern Company stock has had a robust run in 2019. Including dividends, it has returned more than 35% YTD, almost double the broad market index S&P 500.
The slow-moving utilities sector has outperformed the S&P 500 Index in the last five years. Utilities should grow 4%–6% per year in the foreseeable future.
Investors turned to defensive utilities intensified yesterday after President Trump announced 10% tariffs on another $300.0 billion worth of Chinese goods.
NextEra Energy (NEE) will likely report its second-quarter earnings on July 24. The utility is expected to report an EPS of $2.28 for the quarter ended June 30.
The unusual rally in utility stocks has pushed them to record valuation multiples this year. On average, they’re currently trading at 19 times their forward earnings!
The Utilities Select Sector SPDR ETF (XLU) has continued to trade close to its peak recently. It closed at $59.63 at last week, almost 1% and 6% above its 50-day and 200-day simple moving averages.…
Utility stocks have outperformed broader markets. Over the past 12 months, utilities (XLU) have returned 19% including dividends, while the S&P 500 has returned 9%.
Utility stocks fell, while the benchmark Treasury yields rose on June 26. The Utilities Select Sector SPDR ETF (XLU), the representative of top utility stocks in the country, fell 2.2%.
On June 21, the Utilities Select Sector SPDR ETF’s (XLU) implied volatility was 13%—close to its 15-day average volatility. In comparison, SPY’s implied volatility was also close to 13%.
Among the top utility stocks in 2019, Southern Company (SO) leads the pack. The stock has rallied almost 30% in 2019. Southern Company has shown an unusual rally in the last few months.
Utility stocks continued to rise last week. The Utilities Select Sector SPDR ETF (XLU) hit a new 52-week high and closed at $61.0 last week. Utility stocks have shown a slow but steady rally in 2019.
The FOMC kept the interest rates unchanged on June 19. So far in 2019, the benchmark ten-year Treasury yields have fallen more than 20%. A probable rate cut could make utility stocks relatively more attractive.
Utilities rose 0.3%, while the S&P 500 rose 1.6% for the week ending June 21. So far in 2019, utility stocks have risen almost 15%, while broader markets have risen more than 17%.
The utilities sector continues to offer a premium dividend yield along with stable upward price movement. On average, utility stocks are currently yielding 3.2%, while broader markets offer a yield close to ~2%.
