Summary
- 5% dividend yield.
- 5-6% annual EPS growth backed by $3 billion of annual capex.
- Great regulatory jurisdictions with favorable structures.
- 2/3 of earnings from USA, 1/3 UK.
PPL Corporation (PPL) is a pure-play, regulated utility. Roughly 1/3 of assets are in the United Kingdom with the remaining 2/3 in the United States. Regulated asset base is forecasted to grow by 5-7% per year leading to 5-6% annual EPS growth. This growth is driven by $3 billion of annual spending to improve reliability and improve customer outcomes. Happy customers lead to happy regulators - and that means favorable returns for shareholders!
Let's talk about PPL's three major regulatory jurisdictions:
