Introduction
Traditionally utility companies such as The AES Corporation (AES) are considered safe and reliable sources for dividend income, however, it can be risky for investors to simply jump to this conclusion without analyzing their finances. This is especially relevant given their often heavy reliance on debt and the fact that interest rates are almost certainly not going any lower. Whilst I have nothing against using debt to fund growth, it does not matter what type of company, their leverage cannot continue increasing indefinitely.
Cash Flows & Debt
Thankfully the graphs largely speak for themselves,