07-09-2020, 03:04 PM
The dividend cut from D sucks, and I'll likely trim my position a bit, but I think it still represents a decent value relative to other utilities even after the cut.
Assuming a $2.50 annual dividend after the cut and $3.85 in 2021 earnings and you'll be looking at a utility with a 65% payout ratio, a 3.4% yield at today's price, and a projected 6.5% growth rate.
This compares favorably with XEL and WEC who have 2.7% and 2.9% yields with similar growth and NEE that has a 2.2% yield and a bit higher growth.
Assuming a $2.50 annual dividend after the cut and $3.85 in 2021 earnings and you'll be looking at a utility with a 65% payout ratio, a 3.4% yield at today's price, and a projected 6.5% growth rate.
This compares favorably with XEL and WEC who have 2.7% and 2.9% yields with similar growth and NEE that has a 2.2% yield and a bit higher growth.