MGEE

WEC Energy Is a Solid Utility with a Nice Yield

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Image Source: WEC Energy Group Inc – March 2022 IR Presentation By Callum Turcan WEC Energy Group Inc (WEC) is a holding company that owns electric and natural gas utilities in the Upper Midwest (Minnesota, Wisconsin, Michigan, and Illinois), a ~60% stake in American Transmission Company (its service area is in the Upper Midwest and overlaps with the operations of WEC Energy’s other utility assets), and the merchant power firm WEC Infrastructure. WEC Energy serves roughly 4.6 million customers across its service area. Some of its electric and natural gas utilities include Upper Michigan Energy Resources Corporation, Wisconsin Public Service Corporation, Minnesota Energy Resources Corporation, Peoples Energy LLC, The Peoples Gas Light and Coke Company, North Shore Gas Company, W.E. … Read more

NextEra Energy’s Bright Outlook

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Image Shown: NextEra Energy Inc, one of our favorite utilities, owns the largest regulated electric utility in Florida and has exposure to the state’s promising population and economic growth trajectory. The utility is shifting its power generation base away from coal and towards renewable energy, leaning on natural gas and nuclear power plants to make the transition feasible. Image Source: NextEra Energy Inc – Fourth Quarter of 2021 IR Earnings Presentation By Callum Turcan The U.S. utility sector (XLU) is home to some high-quality income generating opportunities, especially utilities with exposure to states that are experiencing strong population and economic growth. Rising interest rates down the road may be a concern, though geopolitical headwinds as a result of the Ukraine-Russia … Read more

Our Report on Stocks in the Utilities (Mid/Small) Industry

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Structure of the Utilities 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 benefit from stable operations and generally lower debt financing, though credit ratings should be monitored closely. We like the structure of the group. Please select here (pdf) to download the report on utilities in our coverage. —– Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value … Read more

Dividend Increases/Decreases for the Week September 3

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Below we provide a list of firms that raised their dividends during the week ending September 3. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week AMMO, Inc. 8.75% PFD SER A (POWWP): now $0.2412 per share quarterly dividend. ASE Technology (ASX): now $0.218 per share dividend, was NT$2.4987. Atrion (ATRI): now $1.95 per share quarterly dividend, was $1.75. Capital Southwest (CSWC): now $0.47 per share quarterly dividend, was $0.44. Centerspace (CSR): now $0.72 per share quarterly dividend, was $0.70. ChoiceOne Financial Services (COFS): now $0.25 per share quarterly dividend, was $0.22. … Read more

PPL Corp Updates Investors, Launches Share Buyback Program

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Image Source: PPL Corporation – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan On August 5, PPL Corporation (PPL) posted second quarter 2021 earnings, and shares of PPL initially moved higher after the report. Though the gas and electric utility, which has a major regulated utility presence in Kentucky and Pennsylvania, missed both top- and bottom-line estimates, what investors were likely focused on most was the announcement that PPL Corp had approved a $3.0 billion share buyback program. The firm expects to spend $0.5 billion buying back its shares in 2021, and we view this as a solid use of PPL Corp’s capital given our fair value estimate sits at $45 per share of PPL, well above where the … Read more

ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline

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ICYMI — Video: Exclusive 2020 — Furthering the Financial Discipline — — In this 40+ minute video jam-packed with must-watch content, Valuentum’s President Brian Nelson talks about the Theory of Universal Valuation and how his work is furthering the financial discipline. Learn the pitfalls of factor investing and modern portfolio theory and how the efficient markets hypothesis holds little substance in the wake of COVID-19. He’ll talk about which companies Valuentum likes and why, and which areas he’s avoiding. This and more in Valuentum’s 2020 Exclusive conference call.   Note: This video was originally published August 2, 2020.    To watch the video >>   The Theory of Universal Valuation —– Valuentum members have access to our 16-page stock reports, … Read more

Utility PPL Is Pursuing a Major Transformation and Has a VBI Rating of 9

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Image Source: PPL Corporation – First Quarter of 2021 IR Earnings Presentation By Callum Turcan PPL Corporation (PPL) operates several utilities in the US and the UK, though the company is in the process of selling its UK utility business (Western Power Distribution) to National Grid plc (NGG). When including the assumption of approximately GBP£6.6 billion in debt, this deal has a transaction value of roughly GBP£14.4 billion and is expected to generate about USD$10.2 billion in net cash proceeds for PPL. Additionally, as part of this arrangement, PPL will acquire National Grid’s Rhode Island utility business in the US (Narragansett Electric Company). When including the assumption of approximately USD$1.5 billion in debt, this deal has a total transaction value … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Valuentum Website Overview

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Overview of the key features of valuentum.com/ (03:55). Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports, dividend reports, and ETF reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. The Benefits of Premium Membership >> Subscribe Now!