PPL Corporation For Electric Energy In PA, KY, & UK
This week I'll be seeking the one and only dividend-paying stock from the utilities business sector for my Ivy portfolio.
That utilities sector has five industries including diversified, independent, regulated electric, regulated gas, and regulated water.
Today I'm reviewing a Large-cap regulated electric company, named PPL Corporation. Its trading ticker symbol is PPL.
PPL Corp is an energy and utility holding company operating through its subsidiaries. The company generates and markets electricity in the northeastern and western U.S. and in the delivery of electricity in Pennsylvania and the U.K.
The company operates in three segments: U.K. Regulated, Kentucky Regulated, and Pennsylvania Regulated.
It serves 411,000 electric and 326,000 natural gas customers in Louisville and adjacent areas in Kentucky; 525,000 customers in central, southeastern, and western Kentucky; and approximately 28,000 customers in 5 counties in southwestern Virginia, and 3 customers in Tennessee.
The company also provides electric delivery services to approximately 1.4 million customers in Pennsylvania; and operates electricity distribution networks in the United Kingdom, as well as delivers natural gas to customers in Kentucky; generates electricity from power plants in Kentucky, and sells wholesale electricity to 10 municipalities in Kentucky.
PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.
I use three key data points to gauge the value of any dividend equity or fund like PPL Corporation:
(1) Price
(2) Dividends
(3) Returns
Besides those three, four more keys will finally unlock an equity or fund in which to invest.
But those first three primary keys, best tell whether a company has made, is making, and will make money.
PPL Price
PPL's price per share was $31.31 at yesterday's market close. A year ago its price was $36.29 for a price drop of nearly $5 per share for the year, that's a 13.7% tumble.
Assuming PPLs price will trade in the range of $25 to $40 next year, PPL Corporation's recent $31.31 price could improve by $4.00 and grow to $35.31 by mid-November, 2019.
PPL Dividends
PPL Corporation's most recent quarterly dividend was $0.41 declared August 24th and paid October 1st.
That $.41 quarterly stipend equates to an annual dividend of $1.64 yielding 5.18% at yesterday's closing $31.31 price.
Gains For PPL?
Adding the $1.64 calculated annual dividend to my estimated $4.00 annual price upside for PPL Corporation makes a $5.64 potential gross annual per share gain, which will be reduced by costs to trade the shares.
A little over $1,000.00 invested today at the $31.31 recent price buys 32 PPL Corporation shares.
A $10 broker fee paid half at purchase and half at sale costs $0.31 per share
Subtracting that $0.31 brokerage cost from the estimated $5.64 gross annual gain leaves a net gain of $5.33 X 32 shares
= $170.56
for a 17% net gain on a $1001.92 investment.
Therefore, PPL Corporation, whose trading ticker symbol is PPL, now shows a possible 17% net gain including a 5.18% dividend yield.
Sixteen brokers cover this stock:
Five brokers say "buy" PPL
Two brokers say PPL will "outperform" its peers.
Eight say "hold" your PPL shares
One says "sell" now.
Those sixteen Wall Street wizards collectively price APU shares at $31.87 next November. That's $3.44 under my $35.31 estimate.
Therefore, you may look at these speculative numbers as follows: PPL Corporation whose trading ticker symbol is PPL, has made money, is making money, and could net a 5% to a 17% net annual gain including a 5.18% dividend yield.
It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if PPL Corporation is worth your time and money.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...
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