EXC - Entergy: An Attractive 3.5%-Yielding Utility Trading At A Reasonable Price
- Entergy enjoys a great deal of stability in its cash flows and this helped it weather through the worst of the pandemic and the lockdowns admirably.
- The company looks likely to grow its rate base at an 8% CAGR over the next two years, which should provide a reasonably attractive return when coupled with the dividend.
- The company is also very active in renewables, which is an area that the market has liked over the past year and this may add some support to the stock.
- The electrification trend could be good for electricity demand, but the EIA believes that the trend is oversold.
- The company boasts a 3.5% dividend yield and appears to be reasonably valued relative to its peers.
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Entergy: An Attractive 3.5%-Yielding Utility Trading At A Reasonable Price