NextEra Energy Inc. (NYSE: NEE) is the only U.S. utility that has ever hit a $100 billion market cap. Its shares peaked at $283.35 but were last seen at $206.00. The $5.60 per share dividend generates a 2.7% yield and is against 2019 earnings of $8.37, as well as consensus estimates of $9.08 EPS in 2020 and $9.85 EPS in 2021. Revenue growth was last seen with consensus estimates of 3.7% for 2020 and 4.6% in 2021.
Dominion Energy Inc. (NYSE: D) has a $59 billion market cap, and the $3.76 dividend per share generates a yield above 5%. That said, its share price of $70.50 is now down from a peak of $90.89. With a $3.76 per share payout, its 2019 earnings were $4.24 per share and consensus estimates are $4.39 EPS in 2020 and $4.63 EPS in 2021. Revenues are forecast to rise 12% in 2020 and 3.2% in 2021. Dominion recently announced a $500 million equity shelf registration after showing it plans to have an at-the-money shelf if needed, with the use of proceeds being for the use of debt repayment and for funding capital expenditures.
Duke Energy Corp. (NYSE: DUK) was trading close to $74.00 with a 5% dividend yield. Its $3.78 per share dividend payout is against last year’s $5.05 EPS and estimates of $5.24 EPS in 2020 and $5.46 EPS in 2021. The consensus revenue growth is 4.6% for 2020 and 3.1% for 2021. Duke recently drew $2 billion on its credit facilities to cut its outstanding commercial paper (short-term debt) and for general corporate purposes. It also issued $400 million in new corporate debt this week.
Southern Co. (NYSE: SO) has a market cap of $53 billion. Its shares peaked at $71.10 but were last seen at $50.50 with a 4.8% yield. The $2.48 per share dividend is against 2019 earnings of $3.11 and consensus estimates of $3.18 EPS in 2020 and $3.31 EPS in 2021. Revenue growth was last seen with consensus estimates of 3.7% for 2020 and 2.4% in 2021.
American Electric Power Co. Inc. (NYSE: AEP) has a $38 billion market cap. Its shares peaked at $76.68 but were last seen at $77.10. The $2.80 per share dividend is against 2019 earnings of $4.24 and against consensus estimates of $4.38 EPS in 2020 and $4.67 EPS in 2021. Revenue growth consensus estimates were 7.8% for 2020 and 3.3% in 2021. AEP yields roughly 3.5%, and this company has traditionally been as big of a dividend defender as any company could ever hope to be.
Consolidated Edison Inc. (NYSE: ED) has a $26 billion market cap. Its shares peaked at $95.10 but were trading at $77.92. The $3.06 per share dividend is against 2019 earnings of $4.38 and consensus estimates of $4.44 EPS in 2020 and $4.62 EPS in 2021. Revenue growth consensus estimates were 4.6% for 2020 and 3.3% in 2021. Con-Ed’s dividend yield is roughly 3.8%. On March 13, it announced that it was suspending service shut off actions in New York City and Westchester.
Exelon Corp. (NASDAQ: EXC) has a market cap of $32 billion. Its shares peaked at $51.18 but were last seen at $32.87. The $1.53 per share dividend is against 2019 earnings of $3.22 and consensus estimates of $3.14 EPS in 2020 and $2.99 EPS in 2021. Revenue growth consensus estimates were −7.8% for 2020 and 0.30% in 2021. Exelon’s dividend yield is about 4.7%. Its ComEd unit also announced it was suspending disconnects, and Fitch recently affirmed its BBB+ ratings with a stable outlook.
Again, it feels like treason even to ponder if the major utilities in America would have dividend risk. Unfortunately, these new times have brought potential unthinkable outcomes with which a historic playbook is of little or no real help.
This chart montage from StockCharts.com shows the shareholder destruction since these peaked in February.
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