I bought some HE a few weeks ago based on a story about dividend stocks on the Marketwatch website. HE was described as a sleepy utility company that would quietly churn out a reliable 5% dividend (yawn). Little did I know that this is apparently a hugely political company, with polarizing viewpoints. Yuck, not what I thought I signed up for. Since that Marketwatch story, HE has dropped about 7% (while interest rates have gone down, which should have had the opposite effect on HE's stock price). I'm kicking myself for not doing more due diligence, but now feel stuck.
this is very vague post. "hugely political company with polarizing viewpoings" Its a boring electric utility
thats getting ready to report earnings. investors are getting nervous that solar is cutting into the top line.
simple as that and yes i live in hawaii and yes i have solar on my roof
Perhaps I overstated my case. I'm basing my statement on the comments I've seen on this board, which are unusual for a utility stock (or at least for a utility stock that doesn't have nukes, which do attract a lot of polarizing views). I'm hoping the earnings call tomorrow can clarify once and for all the company's stance on dividends, and bring a little rationality back to the stock price.
I hate to tell you more bad news, but it is going to get much worse. The dividend MUST be greatly reduced or better yet eliminated in order of having any hope of saving this company. Just my honest opinion.
If HE isn't "saved" how will electricity be produced and consumed? It appears that the PUC want to hookup more solar to the grid and at the same time lower the cost of electricity. Those ideals seem to be incongruent.