NEW YORK, NY — (Marketwire) — 09/20/11 — The Paragon Report examines investing opportunities in the Electric Utilities Industry and provides equity research on PPL Corporation (NYSE: PPL) and Exelon Corporation (NYSE: EXC). Access to the full company reports can be found at:
With the VIX volatility index pushing towards record levels over the last month, long-term investors have turned their attention to safe haven plays. Investors usually count on dividend paying stocks during hectic times in the market, believing in the company–s security and real earnings power. Additionally, when interest rates get as low as they currently are, the return on dividends can far exceed that of bonds.
The Electric Utilities industry is renowned for some of the highest yields on Wall Street. Even during the recession, while many companies cut their dividend payments, most utility companies did not due to the stable revenues these firms generate. Presently, PPL Corporation pays an annual dividend of $1.40 per share for a yield of 5 percent. Exelon Corporation pays a dividend of $2.10 annually for a yield of 5 percent.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Electric Utilities industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.
One well documented headwind facing the sector at the moment are the new Environmental Protection Agency clean air rules. Utilities are now mandated to derive a certain percentage of their electricity output from renewable sources. Multiple utilities have said they will have to retire thousands of megawatts of coal-fired units to comply with the EPA–s rules.
Joseph Dominguez, senior vice president of federal regulatory affairs, public policy and communications for Exelon, downplays the threat of the new EPA rules. “The rules have been in the works for about a decade, and the electric utility industry is well-positioned to respond, with more than 60% of coal-fired power plants already equipped with pollution controls,” he explains. “Those companies that have done little or nothing to improve or update antiquated, inefficient plants should start planning for compliance now, instead of lobbying for categorical extensions or legislative delays.”
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