PPL Corp: Another Utility With A 5+% Yield But Be Cautious

11/12/18

PPL Corporation has a dividend yield over 5% that is much greater than the average yield of the S&P 500 and many other utilities.

Rising interest rates and U.S. tax reform negatively affected PPL Corporation's stock price providing an opportunity for some small investors.

PPL Corporation is in the middle of a ~$15.3B capital expenditure plan resulting in growing long-term debt.

A relatively high payout ratio combined with growing debt limits dividend growth to ~4%-4.5% annually.

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