CEO's mention of dividend's possibility of being lowered, was planed strategy to get EXC's stock price to around thirty. Thus when dividend is lowered to 1.50 area, the percentage would come to about 5%.
The continued confusion concerning divy will keep price from rising. The CEO committed an unethical and calloused act when he made that damning declaration. If he would have lowered the divy right then, it would have better served the stock holders. Now there will be a double whammy--when the divy is lowered, the stock will tank again.
With a CEO like him--plus the current board-- the shareholders are in a precarious position.
I agree. EXC has not raised the DIV in the past five years. Many other utilities have raised them multiple times during that period. What is EXC excuse their different? Poor model that is dependent totally on power prices and putting all eggs in one basket with NUC's and falling gas prices. I agree the management of this company did not set up for success for the stockholders over the past 5 years. hey should either cut the div soon or announce they are not cutting it! If not this bleeding will continue for the next 6 months!
Yea well this has been an 8 mos bleed that I got out of around $38 and been waiting for a $21 to $24 buy in price.
Still not there, and the whammy's will continue to show up.
I'm not typically so negative but the hints were all there in last spring and summers conference calls and filings. I liked EXC up til those mergers and solar deals. I even like the idea of each, but the deals were horrible.
When it gets to the low 20s, it will be a buy for a long recovery, hopefully with a new CEO.