This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

This Utility Stock Is Still a Great Buy: Opinion

Action to take: With a forward P/E of roughly 13 and a dividend yield of about 5.0%, TECO could earn $1.35 per share this year, a 6% increase compared with 2011. Be prepared to wait for some upward movement in share price. The generous dividend is good compensation for that wait.

All in all, this is not bad for a company that's priced like a traditional utility. I'm comfortable with the company's 67% dividend payout ratio and its ability to generate cash. With this in mind, a modest P/E expansion of 15% would create a 12-month price target of $20 per share. Adding the dividend would bring the total return to 20%. This is definitely not Apple (AAPL) or Google (GOOG)-like return territory, but if you're looking for stability, income and some growth, then this fits the bill.

Adam Fischbaum does not personally hold positions in any securities mentioned in this article.

StreetAuthority LLC owns shares of GOOG in one or more if its "real money" portfolios.

Also see:
>>Don't get Caught Holding These Dangerous Income Stocks
>>Russia Could Completely Run Out of This Rare Metal by 2014
>>These Are Exactly the Kinds of Stocks you Want to Own Right Now...

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.00%
FB $80.54 0.00%
GOOG $540.11 0.00%
TSLA $247.73 0.00%
YHOO $43.48 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs