The stock market has cycles and sometimes the stocks go up and sometimes they go down but there is typically a floor on the downturn. When the stocks go down and if they are worthy to be bought, there are buying opportunities for the stocks will eventually go back up. Peter Ashton of Recognia Inc. looked at which opportunities are there in US Utilities.
He started with a market capitalization of $ 10 billion – this will focus on larger, more established utility stocks.
He then wanted companies over 4 weeks have lost some value.
Earnings-per-share growth is also a key aspect of our strategy, look for stocks with EPS growth rates of 5% or more.
To ensure you do not overpay, the expected forward price earnings ratio needs to be less than 20.
Dividend yield needs to be 3% or more.
Company Mkt Cap 4 Wk EPS P/E Div
($ Bil) price perf Gr Rate Yield
Entergy Corp 13.0 -8.9 14.8 14.1 4.7
PPL 22.9 -4.4 5.8 14.4 4.5
PG&E 30.6 -3.3 19.2 16.4 3.2
Dominion Resources 46.1 -3.1 9.9 19.5 3.8
DTE Energy 16.9 -1.1 7.4 19.0 3.2
Avangrid 11.9 -10.1 22.4 17.9 4.3
Eversource Energy 17.2 – 2.0 5.7 18.2 3.2
SCANA Corp 10.2 -3.8 5.1 18.1 3.2
Linking to dividend paying stocks, while all these utility stocks pay dividends most of us can not buy all the stocks – unless you buy an index fund. If you want to buy one of them the trick is narrow the field to the best of the best. You will need to do further research to determine what really defines the utilities company as a constant provider of dividends.
There are more questions than answers, till the next time – to raising questions.