PPL Dividend Stock Analysis

PPL Corporation (NYSE: PPL), a utility company, delivers electricity and natural gas in the United States and the United Kingdom. It serves 322,000 natural gas and 403,000 electric customers in Louisville and adjacent areas in Kentucky; 543,000 customers in central, southeastern, and western Kentucky; and approximately 28,000 customers in 5 counties in southwestern Virginia, and fewer than 10 customers in Tennessee. The company also provides electric delivery services to approximately 1.4 million customers in Pennsylvania; and operates 4 electricity distribution networks in the United Kingdom, as well as delivers natural gas to customers in Kentucky; generates electricity from power plants in Kentucky; and sells wholesale electricity to 11 municipalities in Kentucky. In addition, it provides finance for the operations of PPL and subsidiaries. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.
A Closer Look
The electric-only utilities sector has come under immense pressure lately as companies have seen declining revenues and lowered margins. In order to combat this trend, peer companies in the industry have had to resort to diversification of business model by acquiring gas utilities companies. This integrated utilities business is seeing more traction as noted lately with the moves by Southern Company (NYSE: SO) acquiring AGL Resources Inc (GAS), and Duke Energy (NYSE: DUK) acquiring Piedmont Natural Gas (NYSE: PNY).
The decline in... Read more