Portland General Electric: Solid Dividend At A Fair Price
- Slightly higher increase in dividend than expected might increase expected growth resulting in stock price appreciation.
- 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 »