|Bid||103.99 x 900|
|Ask||107.25 x 100|
|Day's Range||109.52 - 110.96|
|52 Week Range||104.82 - 125.54|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.10%|
Capacity utilization is a key macroeconomic indicator that helps us understand the health of US industries. Sudden changes in capacity utilization levels across industries or within a specific sector indicate the chance of a business cycle change. Capacity utilization is the percentage of capacity utilized of the total potential output.
According to management, Southern Company (SO) is expected to report earnings of $0.46 per share for the quarter that ended on December 31, 2017. For fiscal 2017, Southern Company is expected to report earnings of $2.97 per share against its earnings of $2.84 per share in 2016, which indicates a year-over-year increase of about 4.5% in earnings, in line with the industry average. Southern Company’s Mississippi-based Kemper County power plant reported more than a $3.1 billion loss in the nine months ended on September 30, 2017.
Do Southern Company’s Dividends Look Attractive? Southern Company’s (SO) long dividend payment history is quite impressive. The utility’s huge exposure to regulated operations is likely to enable stable earnings going forward, which are expected to ultimately facilitate the targeted dividend growth for the next few years.
Which S&P 500 Utilities Offer a Huge Potential Upside? Along with rising interest rates, record high valuations have been mainly behind utilities’ recent fall. The Utilities Select Sector SPDR ETF (XLU), which tracks the S&P 500 Utilities Index, has corrected almost 15% since mid-December 2017 when the Fed delivered the rate hike.
How Certain Is Dominion's Deal with SCANA? According to Wall Street analysts, Dominion Energy (D) stock has a mean price target of $81.1 compared to its current market price of $74.7, which suggests a potential gain of approximately 9% in a year. Among the total 17 analysts tracking Dominion, four analysts rate the stock a “strong buy,” and three rate it as a “buy.” Ten analysts recommend the stock as a “hold,” while none of the analysts rate it as a “sell” as of February 6, 2018.
Vectren Corporation (VVC) is a $5 billion diversified utility in Indiana. Its payout ratio was near 157% in the last 12 months. Vectren’s dividend payments in this period were higher than its profits, implying that it paid them through debt or reserves.
Among the key macroeconomic indicators published by the Federal Reserve, US industries’ capacity utilization is particularly important for understanding the health of each industry. Changes to this indicator can help forecast any changes to the business cycle, product demand, and workforce demand. Increasing levels of capacity utilization could translate to a higher number of jobs and a possible increase in capacity through capital spending.