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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (13376)	12/11/2012 10:46:03 PM
From: Steve Felix	Respond to of 34328

A search turns up lots of talk of a dividend cut: seekingalpha.com seekingalpha.com

To: Mannie who wrote (13376)	12/11/2012 10:46:41 PM
From: chowder	Respond to of 34328

Mannie, there is still a lot of uncertainty surrounding EXC. The market is pricing in a potential dividend cut, but what if the cut is more than the market anticipated? The problem with EXC is that power prices are still low, some of their hedges are due, and they are having to hedge at much lower prices which will affect margins down the road. If power prices don't improve over the next 6 months, as more and more of EXC's hedges unwind, it could get ugly. I'm not saying it will. I'm saying there is too much uncertainty for me to chase the yield on this one.

To: Mannie who wrote (13376)	12/11/2012 11:25:25 PM
From: JimisJim	Read Replies (1) \| Respond to of 34328

I got out of EXC prior to Sandy because it was already getting hit just because it has more nuke generation than any other ute and was perceived as a risk LT due to that... and then the expectation of dividend cut or freeze at a min. -- whatever, I got out... my current utes are SRE, D, AEP, SO, NGG, AVA and SCG -- though I'll be dumping SCG in the next few weeks. One of the reasons I got into EXC was because of their nuke generation -- at the time it was considered a LT plus as utes with high amount of nuke generation typically are/were more profitable because of LT advantages in cost to generate... that all seemed to change after Fukishima... I held on for a year anyway as I thought perhaps the pendulum would start swinging back, but the share price kept going down -- indeed, many utes have seen soft share prices this year and many are looking like values to divvy investors... so... as usual, I may be behind the curve on ute trends... Best, Jim