Can PIMCO's New Preferred Share Active ETF Counter Inflation Concerns?
Justin Kuepper
|
Let's examine why preferred stocks could be attractive in today's environment and why...
Analyst Jonathan Arnold noted: “We believe ConEd faces some challenges in 2015 for a few reasons as discussed below. First, ED is unlikely to fare well in a rising rate environment as a low risk, low growth, bond-proxy regulated utility. Second, ED’s largest utility is expected to file for new rates in February at a time when ROEs in the state are under pressure as a result of NY’s formula for setting utility investment returns, which relies on the dividend discount and capital asset pricing models. Lower returns would challenge ED’s earnings growth in 2016 and beyond (our model assumes an earned ROE of 9% while NY commission Staff has most recently supported an earned return on equity of 8.7% for another NY utility). Third, NY regulators are undertaking an important review of the regulatory construct in the state, with a goal toward encouraging more energy efficiency, customer choice, and distributed generation to reduce the need for more power plants, transmission lines or other material capital projects that have historically been necessary to support load growth; while the eventual impact of the proceeding remains unclear, on its face, it would appear the initiative could be negative for NY utilities by discouraging incremental capital investment and rate base growth. Fourth, the National Transportation Safety Board has yet to complete its review of the March 2014 Harlem building explosion, which was traced to a leak in ED’s gas distribution infrastructure.”
Symbol | Mutual Fund | Stake |
---|---|---|
{% mutualfund VTSMX %} | Vanguard Total Stock Market Index | 1.65% |
{% mutualfund VFINX %} | Vanguard 500 Index | 0.92% |
LCEAX | Invesco Diversified Dividend | 0.85% |
Shares of ED are up 16% YTD.
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Justin Kuepper
|
Let's examine why preferred stocks could be attractive in today's environment and why...
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Daniel Cross
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While CITs and mutual funds share many similarities, there are some key differences...
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Sam Bourgi
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The phrase ‘bear market’ has been thrown around a lot lately, but it...
Analyst Jonathan Arnold noted: “We believe ConEd faces some challenges in 2015 for a few reasons as discussed below. First, ED is unlikely to fare well in a rising rate environment as a low risk, low growth, bond-proxy regulated utility. Second, ED’s largest utility is expected to file for new rates in February at a time when ROEs in the state are under pressure as a result of NY’s formula for setting utility investment returns, which relies on the dividend discount and capital asset pricing models. Lower returns would challenge ED’s earnings growth in 2016 and beyond (our model assumes an earned ROE of 9% while NY commission Staff has most recently supported an earned return on equity of 8.7% for another NY utility). Third, NY regulators are undertaking an important review of the regulatory construct in the state, with a goal toward encouraging more energy efficiency, customer choice, and distributed generation to reduce the need for more power plants, transmission lines or other material capital projects that have historically been necessary to support load growth; while the eventual impact of the proceeding remains unclear, on its face, it would appear the initiative could be negative for NY utilities by discouraging incremental capital investment and rate base growth. Fourth, the National Transportation Safety Board has yet to complete its review of the March 2014 Harlem building explosion, which was traced to a leak in ED’s gas distribution infrastructure.”
Symbol | Mutual Fund | Stake |
---|---|---|
{% mutualfund VTSMX %} | Vanguard Total Stock Market Index | 1.65% |
{% mutualfund VFINX %} | Vanguard 500 Index | 0.92% |
LCEAX | Invesco Diversified Dividend | 0.85% |
Shares of ED are up 16% YTD.
Receive email updates about best performers, news, CE accredited webcasts and more.
Justin Kuepper
|
Let's examine why preferred stocks could be attractive in today's environment and why...
News
Markets have continued their rally over the past two weeks, as falling inflation...
Justin Kuepper
|
In this article, we'll look at Element Funds' new Element EV, Solar &...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...