PPL Chart PPL data by YCharts

PPL (PPL)

Background: PPL is an energy and utility holding company. PPL controls more than 12,000 megawatts of generating capacity in the U.S., sells energy in key U.S. markets and delivers electricity to customers in Pennsylvania and the UK. PPL trades an average of 4.6 million shares per day with a marketcap of $17.4 billion.

52-Week Range: $26.13 to $30.27

Book Value: $18.90

Yield: 4.81%

Based on estimated earnings of $2.34 per share this year, the forward price-to-earnings ratio is 12.8. Considering the trend over a longer period it's about time this company received some overdue price respect. I believe a price target short of $35 is too conservative, especially with the yield.

Shareholders receive $1.44 annually in dividend payments. The yield based on a recent price is 4.81%. Over the last five years, the dividend has grown by an average of 4.9% per year.

Shares have moved significantly higher in the last month, with a 5.1% improvement. PPL released earnings on July 08, 2012, and the closing price was $29.13. Based on a recent price of $29.81, shares are up 2.3%. The shares are only about 40 cents below the 52-week high.

Currently, the short interest based on the float is small and not a very big concern. The short interest is 3.3% and one of the more bearish indicators. It costs a lot to hold PPL short so keep an eye on the short interest. If short interest climbs much higher, I would become concerned of what may lie under the hood that needs a closer look.

PPL Dividend Chart PPL Dividend data by YCharts

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