Utilities continue trading near fair value with only a few high-quality dividend payers trading at attractive prices.
Market skepticism about the deal closing with Dominion is leaving plenty of potential upside.
We expect regulators will allow the utility to recover any large storm expenses, resulting in little effect on shareholders.
Long-term, fundamentals-focused investors should check out these utilities regardless of where rates are going.
There are several opportunities to find both value and yields in the sector.
The company reached what we consider a fair settlement in Texas and continues toward a constructive conclusion of its rate case in New Mexico.
Utilities investors have buying opportunities but should pick carefully.
Travis Miller explains the impact of regulatory changes on midstream energy firms and who is best positioned today.
Dominion Energy, Duke Energy, and Southern Company are attractively priced and offer good total return prospects.
Utilities valuations appear to have peaked, but investors should remain cautious.
We think there is a good chance the board might suspend the dividend for at least a few more quarters.
Even the outlook for tightening monetary policies worldwide can't stop utilities from reaching near-record valuations.
Scana trades at a 7% discount to our fair value estimate, well below others in the overvalued utilities sector.
National Grid has been able to repurchase shares at value-accretive prices, given the weakness in its stock price during the past two months.
We think shareholders are in a good position despite fallout from the abandonment plan.
We already assumed the plant would close in 2019, so the announcement has no impact on our fair value estimate of the narrow-moat company.
We think independent power producers could benefit if subsidies to keep nuclear power plants open are scrapped by the courts.
We expect Scana to power through amid upheaval with the building of a new nuclear plant.
Utilities stocks keep rewarding investors with attractive yields and growth, dispelling the long-held notion that rising interest rates will hurt sector returns.
Renewable energy and federal support for infrastructure investment should allow utilities to grow their cash payouts.
Even absent new federal regulations, we see renewables entering a period of hyper growth and think American Electric Power is well positioned to benefit.
The utilities yield spread has turned much more bearish after bonds collapsed at the end of the year.
Dominion Resources, Southern Company, and Duke Energy are poised to create value from a focus on environmental, social, and governance issues.
We don't plan any material changes to our forecasts for the utilities we cover.
Utilities' dividend yields still look good, growth is on track, and balance sheets are strong, offering income investors hope that a potential sector collapse would be mild.
As the plan to cut emissions winds its way through court again, we think Southern, Duke, and Dominion Resources could see opportunities for growth.
The independent power producer looks undervalued given its steady cash flows.
Nothing has been able to halt a historic utilities sector rally since mid-2015, but when will the music stop?
Dominion Resources and Edison International should be able to weather the general slowdown in electricity demand growth, says Morningstar's Travis Miller.
Despite the runup in utilities stocks this year, Duke Energy and Dominion are reasonably priced, higher-yielding choices in the sector, says Morningstar's Travis Miller.
It's paying down debt and moving away from renewable energy.
Even though the utilities sector appears fairly valued, there are pockets of opportunities and potential pitfalls that investors must watch carefully in the coming months.
We think less-traditional utility names Calpine, NRG Energy, and Dynegy could have 20% or more upside, but with very high uncertainty, they're not for the faint-hearted.
Narrow-moat utility Public Service Enterprise Group has held up relatively well in 2016's turbulent market.
It's time for investors to focus on utilities' fundamental earnings-growth prospects and dividend yields to attain the consistent shareholder returns they expect from the sector.
We think the market already priced in higher interest rates earlier this year and like both Duke and Southern for their hefty yields and growth opportunities.
Given the high prices acquisitors have been willing to pay, Atmos Energy, WGL Holdings, and New Jersey Resources could all be prime targets.
Only the Fed could break up utilities' M&A party.
Wide-moat ITC Holdings and narrow-moat Duke Energy are both trading at a considerable discount and should perform well over the long term.
After a rough start to 2015, high-quality utilities such as ITC Holdings, Southern Company, and Duke Energy are trading at attractive valuations.
Utilities' 4% dividend yields still look attractive even with the chance for rising interest rates.
The company's competitive advantage degrades as nuclear generation returns come down.
We don't see an end to this atypical volatility until interest rates rise back toward historical norms.
The regulated-utilities sector is significantly overvalued after 2014's monster gains, but investors looking for exposure should keep an eye on Southern Company and Duke Energy.
Wide-moat Dominion Resources is slightly overvalued at present, but with strong earnings growth potential and a reliable management team, it's a stock that investors should keep an eye on.
Utilities' 23% total return through mid-December topped all sectors except for M&A-fueled health care.
Stock price volatility offers opportunities for investors committed to holding utilities for the long run.
With solid growth prospects and dividend yields above 4%, income investors would be wise to consider high-quality utilities such as Southern Company, Duke, and Public Service Enterprise Group.
Pepco deal, power prices, capacity markets, carbon caps: It’s been a wild ride for Exelon in 2014.
Some of the most defensive companies in the utilities sector have performed the best this year and could face a sharp drop if interest rates start to creep up.