PPL Corp. ( NYSE: PPL ) expects to generate annual earnings and dividend growth in the 6%-8% range through at least 2026, and plans to raise its next quarterly stock dividend by 7% to $0.24/share, the utility said Wednesday as part of its updated business plan .
PPL ( PPL ) issued FY 2023 earnings guidance of $1.50-$1.65/share, in line with $1.59 analyst consensus estimate and 7% above the company's $1.48 midpoint of its 2022 pro forma EPS range.
The company also expects $14.3B of capital spending through 2026, more than 20% above its previous plan, saying it has identified an additional $2.5B in opportunities for grid modernization and resiliency, digital transformation and generation replacement in Kentucky.
PPL ( PPL ) said the planned investments increases its projected average annual rate base growth rate to 5.6% through 2026, with greater than 7% rate base growth in the back half of the plan.
The utility also increased its targeted operations and maintenance savings by $25M to $175M of annual O&M savings by 2026, driven largely by its transmission and distribution operations.
Citing a strong balance sheet and relatively low regulatory risks, Morgan Stanley recently upgraded the stock .
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PPL extends planned 6%-% EPS, dividend growth through at least 2026