Bernstein Offers List of Names in Utilities Sector Unlikely to Maintain Dividends
Bernstein analyst Hugh Wynne published a report Friday highlighting regulated utilities companies which have frozen or cut their dividends have strongly underperformed the sector.
Wynne sees the following companies as least likely to sustain their dividends:
- UNS Energy (NYSE: UNS);
- Avista (NYSE: AVA);
- Black Hills (NYSE: BKH);
- PNM Resources (NYSE: PNM);
- UIL Holdings (NYSE: UIL);
- Pepco holdings (NYSE: POM);
- Great Plains Energy (NYSE: GXP), and
- Consolidated Edison (NYSE: ED).
On the other side the spectrum, Wynne noted a list of companies he believes would be most likely to sustain dividends:
- CMS Energy (NYSE: CMS);
- Edison International (NYSE: EIX);
- Wisconsin Energy (NYSE: WEC);
- OGE Energy (NYSE: OGE);
- El Paso Electric (NYSE: EE) and,
- Integrys Energy Group (NYSE: TEG).
Wynne believes Edison and El Paso shares are undervalued while Pepco is overvalued.
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