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Target Rock Advisors Update List Of Sustainable Utility Leaders

In May of 2012 Kapitall interviewed Richard Rudden, Managing Partner of Target Rock Advisors. He highlighted the rapid increase of dollars invested in socially responsible firms and suggested utility stocks are a logical and profitable place for socially responsible investors.   

"Utilities are rarely considered candidates for the large and rapidly growing number of socially responsible investing funds," Rudden had said, “But we want to call attention to the industry for people looking for more income producing steady growth in their portfolio.”

To that end, his firm creates unique sustainability utility indexes ranked by environmental stewardship, economic performance and societal contribution. Together their “triple bottom line” approach has led to some impressive index results with strong payouts, average earnings growth, and names that consistently grow or maintain their dividends.  

Target Rock's high-sustainability index, listed here  returned an impressive average 16% 1-year return . In the lead is Sempra Energy (SRE) with a 37% 1-year return. The firm also ranks highest with the "triple bottom line" approach. 

2013 Winners

With its flagship index, the Target Rock Sustainable Utility Leaders Index (SULI), the advisory team focuses more on comparing sustainability leaders with non or lesser sustainability leaders. On Tuesday morning (March 26, 2013) Managing Partner Richard Rudden and co-founder Kyle Rudden announced updates to the index.

According to the press release the 2013 winners "have been chosen from a field of approximately 150 publicly traded energy utilities and related companies domiciled in the United States, representing some 350 distinct operating subsidiaries. The awards are grouped into market capitalization categories to acknowledge the different challenges faced by utilities because of their size."

Target Rock

Investing Ideas

Target Rock says their The Sustainable Utility Leadership Index can be used by investors to guide sustainable and socially responsible portfolio decisions. Interested in making a sustainable investment? Here are the award recipients  sorted in categories in alphabetical order:

For the 9 stocks listed below the list average 1-year return is 17%.

Top 3 Large Cap Award Recipients:

1. Duke Energy Corporation ( DUK): Operates as an energy company in the Americas.  Market cap at $49.58B, most recent closing price at $70.28. Dividend yield 4.35%. Payout ratio: 101.15%.

2. PG&E Corp. ( PCG): Operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California.  Market cap at $19.13B, most recent closing price at $43.59. Dividend yield 4.18%. Payout ratio: 95.71%.

3. Sempra Energy ( SRE): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide.  Market cap at $19.28B, most recent closing price at $79.22. Dividend yield 3.18%. Payout ratio: 67.52%. Sempra's rank as #1 in sustainability was announced March 19 during the ‘State of Energy’ dinner at the EnergyBiz Leadership Forum in Washington, DC.

Average return of the large cap award winners is 17%. Compare performance with the Turbo Chart below:

Top 3 Mid-Cap Award Recipients: 

1. IdaCorp, Inc. ( IDA): Engages in the generation, transmission, distribution, sale, and purchase of electric energy in the United States.  Market cap at $2.38B, most recent closing price at $47.43.Dividend yield 3.2%. Payout ratio: 40.70%.

2. NV Energy, Inc. ( NVE): Distributes electric energy in Nevada.  Market cap at $4.67B, most recent closing price at $19.77. Dividend yield 3.84%. Payout ratio: 46.85%.

3. Pinnacle West Capital Corporation ( PNW): Provides retail and wholesale electric services primarily in the State of Arizona.  Market cap at $6.22B, most recent closing price at $56.64. Dividend yield 3.85%. Payout ratio: 75.36%.

 

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