crimsonghost747
Unregistered
Thanks, I appreciate you looking into it. Indeed what draw me to this is the combination of low p/e, high div, high div growth and the majority of generating assets being in renewables already. Looking at EPS to dividend the payout ratio is fine. Not great, but fine. Indeed if we look at cash flow then it's a bit of a different story.
I will probably end up buying a bit of this. It'll never be a large position due to the risk with share dilution and balance sheet but I think that the risk/reward is worth it at this time when it's damn near impossible to find anything truly cheap. High starting yield and high div growth are a great combination as long as the company doesn't go bankrupt 
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
(07-26-2021, 03:12 AM)crimsonghost747 Wrote: Thanks, I appreciate you looking into it. Indeed what draw me to this is the combination of low p/e, high div, high div growth and the majority of generating assets being in renewables already. Looking at EPS to dividend the payout ratio is fine. Not great, but fine. Indeed if we look at cash flow then it's a bit of a different story.
I will probably end up buying a bit of this. It'll never be a large position due to the risk with share dilution and balance sheet but I think that the risk/reward is worth it at this time when it's damn near impossible to find anything truly cheap. High starting yield and high div growth are a great combination as long as the company doesn't go bankrupt
They actually remind me of ALE. About the same breakdown % of regulated vs expansion into solar/wind projects which often aren't regulated. I see nothing sinister going on at ARQ, they are just asking for a problem at some point. I always tell myself if it were easy to grow fast and pass out free candy for decades, then the FANG stocks would probably be doing that.
ARQ either pulls it off, or they get forced to cut the dividend when the dilution gets out of hand. They are just too small to pull 9B cash out of thin air. BTW I think some of their planned expansion includes nat gas distribution infrastructure.
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
Did my quarterly DD and endured some utility conference calls. XEL is my first love but I remain most bullish on WEC. Mostly because they give solid guidance that becomes reality. They beat earnings and confirmed EPS growth and dividend growth in the 6-7% range for 2022. The are tracked by good analysts that ask the right questions. WEC management admitted the infrastructure bills will be lucrative, and they were NOT factored into company guidance for 2022 at all. They should have some solid earnings beats if both bills pass. They are basically sandbagging. I'll add shares if interest rates scare the shares down. If not I will probably add anyway. I love this UTE for the next 10 years. They have so many good things in motion and many have a green enough tilt.
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
WEC beats earnings yet again and confirms 7.5% projected growth for 2022. My favorite UTE for a reason.
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
Anyone have gas oriented utilities they'd like to share? Looking for a few tickers to research.
Posts: 2,411
Threads: 54
Joined: Jul 2013
Reputation:
34
(07-22-2022, 05:31 PM)fenders53 Wrote: Anyone have gas oriented utilities they'd like to share? Looking for a few tickers to research.
ATO, CPK, OGS, SR, SWX are the ones I have on my watch list. WTRG is water/gas.
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
(07-22-2022, 11:09 PM)EricL Wrote: (07-22-2022, 05:31 PM)fenders53 Wrote: Anyone have gas oriented utilities they'd like to share? Looking for a few tickers to research.
ATO, CPK, OGS, SR, SWX are the ones I have on my watch list. WTRG is water/gas.
Thanks that was helpful. A young investor friend on a Discord is trying to do a utility analysis spreadsheet, and I needed some peers for UGI which is a favorite of his. Trying to illustrate to him that a mostly regulated electric WEC is just not a great comparison to pure gas UTEs with pipelines and trying to trade the spot price on propane they truck deliver all over. They can both be good or bad, but they will be for different reasons much of the time.
Posts: 2,411
Threads: 54
Joined: Jul 2013
Reputation:
34
Here is a writeup I did on ONE Gas, Inc. (OGS), which is a regulated natural gas utility with operations in Oklahoma, Kansas, and Texas.
ONE Gas: A Buy For Long Term Growth and Income
Posts: 2,411
Threads: 54
Joined: Jul 2013
Reputation:
34
I've updated my utility sector watch list for the 29 companies I follow.
You can download a live PDF copy of it here if you'd like it for further study or want to check again during market hours.
The attached snapshot is the data as of Friday's close.
Posts: 6,404
Threads: 47
Joined: Aug 2018
Reputation:
63
Thanks Eric. I am about to add back to my utilities I trimmed from overweight last year. I'd prefer one more rate hike out of the way. I only own WEC and XEL now. I think I am going to look at UGI. I prefer regulated but at the right price?
Posts: 1,683
Threads: 55
Joined: Oct 2020
Reputation:
5
11-18-2023, 09:53 AM
(This post was last modified: 11-18-2023, 10:36 AM by ken-do-nim.)
Just read this article: https://finance.yahoo.com/news/exc-wec-b...06624.html. It comes to the conclusion that, at present, EXC is a better offering than WEC, though the article really doesn't do any serious analysis, just compares some surface numbers. Thoughts? I never heard of the former before today.
|
