Utilities Estimated 3-5 Year Total Return (Updated)
After the selloff in utility stocks over the past month, we decided to update the estimated total return of the utility universe. Up to this point, no utility has changed long-term guidance. We will revisit this list again after all the earnings have been released.
There are now 11 utilities trading for an estimated 11%+ return. This is up from 5 last month.
There are now 16 utilities yielding 4% or more. This is up from 7 last month. Three utilities now yield over 5% (PNW, ALE, NWE)
The only stock without a yield, PCG is up over 17% in the last month as the company considers spinning off a minority stake in non-nuclear generation subsidiary.
The average expected return has increased from 9.8% to 10.3%
Dividend yield represents at least 40% of the expected total return for 11 utilities.
Dividend yield represents under 30% of the expected total return for 13 utilities.
The median yield is 3.6%. The average yield is 3.5%.
AEP had an analyst day this week:
Maybe a spin of the transmission business?