Buy low and sell high. Nothing too complicated here. The stock is approximately 20% below its 5-year average of about $30/share, and yielding 6.75%. When MMs are paying 2.75%
I'm in for 2k shares, collect the divy, and wait for the price to climb back up. Even with a modest dividend cut - which I don't think they are going to do - you can't find a better place to park some cash...
GXP is faced with substantial cost overruns for the Iatan coal plant project, and they are playing games with the regulators about that because they want the Aquila acquisiton to go thru. GXP is going to make too many rate concessions to acquire Aquila. The sell off of SEL removes the only non-regulated profit maker from their asset base. GXP has made concessions to build wind generation, and that is not economically sound as an investment.
The divy might be sound for a year or so, but it does look like a lock going forward at least at the present level. Regulatory environment in MO is poor for all IOU's. Environmental cost loom large to keep old coal genertors going. Interest rates have fallen and even with that the share price has fallen. As you know this is the converse of historical price trends tied to interest rate changes. Very bad signal.
Too much debt and challeneges they will have once the Aquila merger is approved. Aquila's infrastructure is average at best and Great Plains will have to invest a lot of money into their system to get it up to the standards of KCPL's.
Yes, but only smart people buy quality stocks with great dividends when the price is down. . .that means about 10% of the American public. . .the rest are sheep that buy Google and loose 40% of their money, and never see a dividend. . .that is why I am retired already. . .buy low, hold forever, and collect dividends. . .we have held many stocks in the family trust for 30 years or more - like Chevron and Consolidated Edison, etc. .GXP is about 5 years old. . .oh well . . .out to play golf.
Let's see, buy low, collect dividends, enjoy life. I think getting an ulcer trying to catch the bottom and hit the top while paying multiple commissions and high short term tax rates is much more exciting. All kidding aside, hopefully some of the newer investors out there learn a few things from the old school methodology of combining knowledge, patience and value. Best to all.