CAPS Rating: 5 out of 5

An energy and utility holding company that, through its subsidiaries, is primarily engaged in the generation and marketing of electricity in the northeastern and western U.S. and in the delivery of electricity in Pennsylvania, the U.K. and Latin America.


Player Avatar TeenStockPicker (55.63) Submitted: 2/26/2013 3:05:06 PM : Underperform Start Price: $28.67 PPL Score: +9.34

The PPL family of companies includes seven operating utilities, delivering electricity and natural gas to more than 10 million customers in the U.S. and the U.K. An immediate red flag here is PPL's dividend paying strategy. Instead of lowering, or keeping their dividend the same this past quarter PPL decided to raise it 2% and take on long-term debt (negative cash-flow last year).? PPL did predict that 2013 will be a positive year, but to do that they need to get their balance sheet in order. With their long-term debt to equity ratio at 1.74 some problems certainly exist. PPL's biggest hope is their supreme court battle over overseas taxes qualifying for a foreign-tax credit. Another stock that doesn't deserve 5 stars in my opinion.

Member Avatar DrGoldin (99.71) Submitted: 4/24/2013 6:49:02 AM
Recs: 1

Operating cash flow was about $2.7 billion in calendar 2012. The dividend payout ratio is under 60%. They have enough cash on hand to pay an entire year's worth of dividends. What are you worried about?

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