ITC

PPL Corp Reports Solid 3Q; Raises Midpoint of 2013 Earnings Forecast

by

Generally speaking, we like the utility industry. Utilities provide an essential service, generally operate in a near-monopoly position and benefit from significant barriers to entry due to the capital intensity of new projects and regulatory/environmental requirements. Regulatory frameworks differ across the grid, but most utilities benefit from an assured rate of return on capital investments through predetermined rate structures, where cost adjustments are made by authorities periodically. Most constituents also benefit from stable operations and generally lower debt financing, though we note credit ratings should be monitored closely. The strong industry backdrop was apparent in PPL Corp’s third-quarter earnings release, issued last Thursday. Though adjusted earnings from ongoing operations per share declined on a year-over-year basis during the period as … Read more

Dividend Increases for the Week Ending August 16 Included Weyerhaeuser and Cinemark

by

Below we provide a list of firms that upped their dividends for the week ending August 16. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here (or use our ‘Symbol’ search box in our website header). Firms Raising Their Dividends This Week Atrion Corp (ATRI): now $0.64 per share quarterly dividend, was $0.56. Avnet (AVT): first-ever quarterly dividend of $0.15 per share. Bolt Technology Corp (BOLT): now $0.09 per share quarterly dividend, was $0.07. Cinemark Holdings (CNK): now $0.25 per share quarterly dividend, was $0.21. Cincinnati Financial Corp (CINF): now $0.42 per share quarterly dividend, was $0.4075. Connecticut Water Service (CTWS): now $0.2475 per share quarterly … Read more

ICYMI — Shocking?!?! Utility Dividends Aren’t Always Safe

by

There is plenty to like about the business models of utilities. Regulated utilities, for one, are monopolies in their operating regions, providing an essential service to businesses and customers. This, coupled with the fact that the returns of regulated utilities are set by a regulatory body within a defined ratemaking process, causes the sector to be full of operators that boast steadily-growing earnings that appear to be materially dependable. As we note in this article, however, a surprisingly large number of utilities in our coverage universe have cut their dividends in the past. Are the dividends of utilities as safe as many make them out to be? Let’s dig in. By Valuentum Analysts We frequently receive questions as to why … Read more