Our analysis is based on comparing PPL Corp. with the following peers – FirstEnergy Corp., Entergy Corporation, Duke Energy Corporation, Exelon Corporation, American Electric Power Company, Inc., Consolidated Edison, Inc., Avangrid, Inc., Southern Company, AES Corporation and NextEra Energy, Inc. (FE-US, ETR-US, DUK-US, EXC-US, AEP-US, ED-US, AGR-US, SO-US, AES-US and NEE-US).
PPL Corp.’s dividend yield is 4.44 percent and its dividend payout is 56.20 percent. This compares to a peer median dividend yield of 4.37 percent and a payout level of 65.84 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking at this peer group. The downside is the company’s relatively low dividend quality score of 17 out of a possible score of 100.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2016), PPL-US paid a low quality dividend, which represents a yield of 4.43% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were medium quality and 2 were low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Quadrant label definitions. Hover to know more
Over the last twelve months (prior to September 30, 2016), PPL-US paid a low quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.74x), investing cash flow (coverage of -2.96x), issuance cash flow (coverage of 0.70x) and twelve-month prior cash (coverage of 0.96x), for a total dividend coverage of 1.48x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||4.38||5||4.63||4||4.37||4.44|
|Dividend Payout (%)||51.85||55.38||83.52||57.13||64.71||56.2|
A complete list of metrics and analysis is available on the company page.
PPL Corp. is a holding company, which engages in the generation, transmission, and distribution of electricity and sale of gas. It operates through the following segments: United Kingdom (U.K.) Regulated, Kentucky Regulated, and Pennsylvania Regulated. The company was founded in 1920 and is headquartered in Allentown, PA.
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