This stock has certainly dropped the past few weeks. 10 year bond yields in excess of 4.5% have not helped but it has also outpaced the utility index (on the down side). Not sure what is happening since news is limited but stock now at two year lows. I would suggest now is a good entry point but I have no idea how long this free fall will last. Dividend is nice but it will take many quaters of dividends to make up for the past few weeks. Anyone heard any adverse news?
I just recently bought ( at $21 ) FOR the dividend. So far, that is gone, but I'm hopeful. Thought I was lucky to get in at that $21. Oh, well, --
Hard to imagine what has caused this drop, I don't believe that 90% on the price swings have anything at all to do with day to day facts of life. Day traders, brokerage houses, hedge funds, incompetent presidents take their toll............just have to outlast them. As long as they're paying the dividends, no need to sell, so the price don't mean much.
I think $21 was a great entry point and your right, 95% of the folks purchase this for the dividend and care little about the overall price. My only issue was why the recent collapse was so rapid and why it outpaced 90% of the other utility companies. There was no news I could find from the company to indicate an issue. A liability that EDE does carry is a high forward PE (compared to other utilities) I think this compounded the recent rapid fall in price. As much as I would like to deny it EDE probably deserves a price around $15 based on forward PE. I think the high dividend is what keeps the forward PE balloon inflated. If they were to announce a reduction in the dividend I think it would be "look out below"