Yahoo Finance Here's Why You Should Add Black Hills (BKH) In Your Portfolio
Black Hills Corporation’s BKH systematic investments and focus on clean energy development will boost its performance.
Let’s take a look at the factors that are driving this Zacks Rank #2 (Buy) utility company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance & Long-Term Growth
The company’s shares have gained 14% in the past 12 months compared with the industry’s rise of 6.7%.
The company’s long-term (three to five years) earnings growth is pegged at 4.27%.
Systematic Investments
The company is investing systematically on its electric and natural gas utilities. Its capital expenditure plan for the next five years is focused primarily on projects and initiatives that maintain safety and reliability as well as foster customer growth. It expects to spend $2.9 billion capital through 2019-2023 time period.
Estimate Revision
Earnings estimates for Black Hills have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings per share has moved up 0.8% and 0.3% to $3.47 and $3.71, respectively, during the said period.
Dividend Yield
The company has been paying out dividend to its shareholders on a continuous basis. It has increased dividend for 49 consecutive years. The company’s targeted annual payout ratio is 50-60% of earnings. Currently, Black Hills has a dividend yield of 2.81% compared with the Zacks S&P 500 composite’s 1.8%.
Other Stocks to Consider
Some other top-ranked stocks from the same industry are FirstEnergy Corporation FE, Edison International EIX and The AES Corporation AES. All the three stocks hold a Zacks Rank #2 (Buy).
Long-term earnings growth of FirstEnergy, Edison International and The AES Corporation is pegged at 6%, 5.27% and 8.49%, respectively.
FirstEnergy, Edison International and The AES Corporation delivered an average positive earnings surprise of 2.87%, 0.09% and 4.68% in the last four quarters, respectively.
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FirstEnergy Corporation (FE) : Free Stock Analysis Report
Black Hills Corporation (BKH) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
Edison International (EIX) : Free Stock Analysis Report
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