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    Portland General Electric: Solid Dividend At A Fair Price

    Sun, 08/28/2011 - 15:30 EDT - Seeking Alpha
    • Jim Pyke
    • POR

    By Jim Pyke:Portland General Electric Company (POR) appears to be a fairly valued stock with a solid dividend. Upside could come from two areas:

    1. Slightly higher increase in dividend than expected might increase expected growth resulting in stock price appreciation.
    2. Renewable energy requirements by Oregon may support additional growth in the ratebase.

    POR was founded in 1930 and operates as a vertically integrated electric utility in Oregon, serving about 820,000 customers, ranging from residential to industrial. POR provides both retail and wholesale power; however, its retail business accounts for approximately 95% of its revenue, with residential retail sales representing approximately 50% of that portion.POR had about $1.8 billion in revenue in 2010. POR has a market capitalization of $1.77 billion and an enterprise value of $3.5 billion, suggesting significant leverage. POR has a consistent track record of paying dividends, but with only small growth. POR's estimated forward dividend yield is 4.5%Complete Story »

    • Original article
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