OGE Energy Corp. (OGE)

Always need some part of your portfolio that doesn't have too high a beta. Just sit back and watch dividends come in. Won't make you rich, but will add some stability.

This stock will probably never outperform the S&P. However, they pay a solid dividend. This, I would rate, as my top income stock. They're more than solid. They a basically the only electric company on the state of Oklahoma, and reach up into Kansas.

Negatives: OGE operates predominately in Oklahoma, which has one of the strictest Public Utility Commissions (the Oklahoma Corporation Commission) in the country.

Positives: Low beta, and a 5.5% dividend. This stock will be paying for eternity. Good profits and they even get their customers to subsidize their investment in wind power.

Overall, a solid mid-cap stock that pays well and will see little capital depreciation in troubled times.

CLASSIC UTILITY STOCK. REGULATED ON EARNINGS BUT UNDER PRICED WITH 7% DIVIDEND AT THIS PRICE. HAVE SOME AND AM GETTING MORE

The economy went off a cliff with OGE in the saddle yelling"Charge!". They can not spin off IPO to cover expansion of Gas gathering pipe line, Low gas prices wiped out earnings from Gas gathering. OGE had to borrow to cover the expense, purchase of generation station in OKC, purchase of wind farms construction, and they need to borrow money to build EHV line to tie wind farms to power grid. I do not want to loan them money - do you? They are in a bad spot(now).

wind power

I like long term prospects for OGE, For short term just don't feel urgent. Thier just straped down two many ways for now. Right now looking for harder riskier push. in fossil energy.

Since I only do this on sundays...
I used Bates' DDM and project 47.70 for this stock.
I undertook my investigation of the electric utilities sector starting with the idea that this is a mature sector, probably the first to get out of any slump.

energy

Steady as she goes.

Move to smart electric systems and lines in addition to Commission forcing them to achieve more power through wind and the related transmission line infrastructure necessary to accomodate that expensive investment should leave them with very high expenses of which a good chunk (about 20%) can not be passed on to consumers.

In for the Long Haul !

Despite any bump by JIm Cramer last summer, this still has room to grow. Approaching summer months will increase demand for energy in the short run, but the company look solid long term. OGE has done a great job marketing wind power and is expanding thier wind power generation and is poised to make continued money in that area. Especially in a utility industry where gov. regulations prevent charging a certain amount over the cost of fuel, wind power allows for much better potential margins and OGE already has a big jump on that market.

Energy provider should return better than overal market

Sold at a profit but believe further growth is almost assured by the markets it serves and company strength.

With a yield of approx. 3,4% and a P/E around 16 AND a rate increase pending what's not to like?

Heading into economic slowdown, safe utilities will outperform.