By Narrative Science In the month leading up to the PPL’s second quarter earnings announcement slated for Thursday, August 1, 2013, expectations have risen for the upcoming results. The consensus analyst estimate has gone from 44 cents per share to the current projection of earnings of 48 cents per share. …read more
Source: FULL ARTICLE at Forbes Markets
By Justin Loiseau, The Motley Fool
Filed under: Investing
From dividend increases to Earth Day celebrations, utilities have been busy this week. Here’s what you need to know to keep your portfolio’s profits pouring in:
Electrifying Earth Day
Several utilities took the opportunity of Earth Day (Monday) to espouse environmental efforts. Southern loaded on 139 MW of solar and 250 MW of wind to its energy portfolio. The utility currently produces around 1,350 MW of generation from solar, hydropower, biomass, and landfill methane gas, equivalent to around 2.9% of its total capacity.
Duke Energy released its sustainability report, updating shareholders on its $9 billion modernization project. The utility expects to retire 6,300 MW of coal capacity over the next few years and expects to own or purchase 6,000 MW of wind, solar, or biomass power by 2020.
PPL celebrated Earth Day with the opening of a unique “clean coal” facility that recovers around 300,000 tons of gypsum mineral annually to be used in fertilizers. “Innovative projects like this show how coal has and will continue to be a major contributor to the economic vitality of Kentucky and of the U.S., not just in the energy sector, but in science and innovation and now agriculture,” said Senate Minority Leader Mitch McConnell (R-Ky.) at the plant‘s grand opening. In the next five years, PPL expects to invest around $6 billion in its system.
It’s earnings season
In the blink of an eye, Q1 2013 is here and gone. Southern reported earnings this week, hitting sales expectations but missing slightly on earnings. Any longer-term progress was negated by a $333 million after-tax charge for increased construction costs at a new power plant. The company increased its dividend last week for the 12th year in a row, calling into question the sustainability of its current cash flow.
After upping its dividend earlier in the week, American Electric Power reported earnings on Friday, beating sales estimates and matching earnings expectations. Lackluster industrial demand and impending deregulation in Ohio are trouble spots for the utility, but overall rate increases and new transmission agreements mean that sustainable income isn’t gone yet.
Dominion disappointed this quarter, missing on sales and reporting EPS 8.8% below analyst expectations. Regulated sales slumped, but $25 million in EBIT from the utility’s Blue Racer midstream joint venture kept earnings from evaporating. Looking ahead, the utility hopes to save $100 million on operating expenses for fiscal 2013 as it continues to grow its transmission business.
Stay current on electricity
The world of utilities is changing fast, and dividend stocks aren’t the stable stalwarts they once were. Be sure to check back weekly for the latest on your portfolio’s moves, and you’ll be well on your way to electrifying earnings.
As the nation moves increasingly toward clean energy, Exelon is perfectly positioned to capitalize on having the largest nuclear fleet in North America. This strength, combined with an increased focus on balance sheet health and
Source: FULL ARTICLE at DailyFinance
On 3/13/13, PPL Corp’s Equity Units (NYSE: PPL.PRU) will trade ex-dividend, for its quarterly dividend of $1.1875, payable on 4/1/13. As a percentage of PPL.PRU‘s recent share price of $54.53, this dividend works out to approximately 2.18%, so look for shares of PPL.PRU to trade 2.18% lower ? all else being equal ? when PPL.PRU shares open for trading on 3/13/13. On an annualized basis, the current yield is approximately 8.61%, which compares to an average yield of 4.55% in the “Utilities” preferred stock category, according to Preferred Stock Channel.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen » …read more
Source: FULL ARTICLE at Forbes Markets
By Selena Maranjian, The Motley Fool
Filed under: Investing
Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some global infrastructure stocks to your portfolio, the SPDR FTSE/Macquarie Global Infrastructure 100 ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF‘s expense ratio — its annual fee — is 0.59%, and it recently yielded 3.2%. The fund is fairly small, too, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.
This ETF has underperformed in recent years, lagging the world market over the past three and five years. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
With a low turnover rate of 10%, this fund isn’t frantically and frequently rejiggering its holdings, as many funds do.
Why global infrastructure?
Our global economic slump won’t last forever, and there are already signs of life here and there. Thus, companies specializing in materials and utilities are poised to prosper as construction and infrastructure projects get under way and manufacturing kicks into a higher gear.
More than a handful of global infrastructure companies had strong performances over the past year. Utility company PPL , for example, advanced 16%. Yielding 4.8%, it recently hit a 52-week high, but its debt has been growing, too, along with capital spending. The company has been focusing more on regulated generation, which tends to be less risky. Bulls like its adoption of greener smart grid technology, and management is optimistic about 2013.
National Grid gained 15%, and offers a hefty yield. With extensive operations in the U.S. and the U.K., it’s investing in clean energies, which is promising, but its growth has stalled in recent years, and some fear a dividend cut. Others have been dismayed by the company buying back shares at relatively rich values.
Other companies didn’t do as well last year, but could see their fortunes change in the coming years. Natural gas specialist Spectra Energy shed 3%, and yields 4.2%. Growth initiatives have included opening a new natural-gas processing plant in British Columbia, and expanding its pipeline to deliver more natural-gas capacity to the New York-New Jersey region. It’s also been inking some promising partnerships. Its fourth-quarter earnings were pressured by lower commodity prices.
Exelon , the nation’s largest nuclear-power company, lost 12%, and recently slashed its dividend by 41%. The company has been hurt by the relatively high cost of nuclear energy in an environment of very low gas prices, but the current situation won’t last forever, and Exelon is …read more
Source: FULL ARTICLE at DailyFinance
WASHINGTON (Reuters) – The Supreme Court on Wednesday heard arguments in a dispute between U.S. utility PPL Corp and the Internal Revenue Service that could influence U.S. multinational corporations' scope for claiming credits to offset overseas tax payments. In a rare instance of the high court tackling a tax case, Pennsylvania-based PPL argued it is entitled to claim $39 million in U.S. foreign tax credits against a 1997 British windfall tax. Like PPL, at least two other U.S. …
By Narrative Science PPL (PPL) is expected to report poor fourth quarter earnings on Thursday, February 14, 2013 with analysts expecting a 34.3% drop in earnings from a year ago. The consensus estimate is 46 cents per share, down from earnings of 70 cents per share a year ago. …read more
Source: FULL ARTICLE at Forbes Markets
