At $37 this equates to a 3.4% divdend. Information on Yahoo is for trailing data. EXC website shows data from 12/31/12. I called IR to get actual div amount. Its not really well published and the yahoo charts are a bit misleading showing a div rate of 5.7%.
I'll still hold for time being to see if price returns and div eventually increases. I suspect some selling when many income investors realize divy cut.
I hope no one has not heard of the div cut but I bet there are plenty of investors who have not. Who would except 3.4% at 37/share is beyond my logic. 3.4% on the risks in a nuclear energy investment ??????? Good luck investors in EXC.
what do you mean by the risks of a nuclear energy investment ? I am not asking about the issues around nuclear energy, that is old news...and no new news that I know of.
I mean as an investment risk (which is what you are stating). It is not like they are a start up company trying to site a new reactor. It is a mature industry (been around during my 35 year Env. Engineering career anyway, that is fairly mature).
isn't quoting the yield, and the stock price...redundant ? if it was a 2 dollar/share and 3.4 % yields would you feel better ?
While everyone you know may know of the cut, some prospective investors may not know about the cut based on the information published, since the 5.7 % is misleading. Yes, they should do their DD but there still remains a myth out there that utilities are "safe" investments. A whole bunch of little old ladies are gonna be surprized when the divy check comes in less. These are 'singles' hitters.
Higher NG prices may negatively impact the gas fired plants of EXC and somewhat mute the retail NG market.
Thank you for your insights, good luck investing.