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Started By
Message
Contemplating buying SO (Southern Co.)
Posted on 10/12/22 at 3:09 pm
Posted on 10/12/22 at 3:09 pm
Does anyone own or follow SO closely? It hit a 1 year low today and that triggered an alert for me. I've been wanting to add a solid Utility to my portfolio.
A few things that stand out:
- sitting on 1 year lows
- Dividend yield is at approx 4.5%
- PE ratio is a little high for the industry at 24
- They are in a good position as far as debt and interest coverage is concerned (to be expected)
My TDA app shows 11 analyst ratings with 5 as a Buy, 3 being Hold, and 3 as a Sell.
A few things that stand out:
- sitting on 1 year lows
- Dividend yield is at approx 4.5%
- PE ratio is a little high for the industry at 24
- They are in a good position as far as debt and interest coverage is concerned (to be expected)
My TDA app shows 11 analyst ratings with 5 as a Buy, 3 being Hold, and 3 as a Sell.
This post was edited on 10/12/22 at 3:10 pm
8
Posted on 10/12/22 at 3:20 pm to skewbs
They are closing a lot of their coal plants within the next few years. Lot of ways investors could go with that news once it actually happens, but you have to think it ups the perception of SoCo in the eyes of "green investors".
Utilities are usually a good buy in lean times.
If the numbers are good (which from your comment they look to be) I would think its a good buy.
Utilities are usually a good buy in lean times.
If the numbers are good (which from your comment they look to be) I would think its a good buy.
Posted on 10/12/22 at 3:21 pm to skewbs
I own it and have gotten crushed. It isn't just SO either. The whole sector has been getting killed.
Posted on 10/12/22 at 3:21 pm to skewbs
Nah
That PE ratio has some room to drop - and with inflation, it makes the upkeep, maintenance and new equipment purchases so much more costly.
That PE ratio has some room to drop - and with inflation, it makes the upkeep, maintenance and new equipment purchases so much more costly.
Posted on 10/12/22 at 4:18 pm to KillTheGophers
quote:
The whole sector has been getting killed.
Looking at the Utility Sector SPDR ETF (XLU), Utilities were doing pretty well up until about mid-September. Over the last few weeks, yes, they are getting crushed. But over the past year and through mid-Sept XLU was up almost 17%.
Posted on 10/12/22 at 5:28 pm to skewbs
Yes, I am talking about recently. Down twenty something percent since mid August.
Posted on 10/12/22 at 5:38 pm to TDTOM
As in years past, the outcome of Plant Votgle will play a huge part. It seems to be on track now but still an ongoing process. As stated earlier they are closing all of their coal plants. I’m curious to see how this plays out as Bowen and Scherer played a huge part in powering the state.
Posted on 10/12/22 at 5:38 pm to skewbs
You guys act like these Stocks are never coming back. If you like the company buy a few shares. Sure it may get cheaper but its 60 dollars a share. Dont think your going to go broke on it 
Now i know why most of you guys are into penny stocks.
Now i know why most of you guys are into penny stocks.This post was edited on 10/12/22 at 6:02 pm
Posted on 10/12/22 at 6:39 pm to FLObserver
quote:
Sure it may get cheaper but its 60 dollars a share. Dont think your going to go broke on it Now i know why most of you guys are into penny stocks.
Yeah OP, it’s Impossible to go broke buying a few shares at $60 you silly goose
Posted on 10/12/22 at 7:01 pm to skewbs
The problem with utilities as a whole right now is natural gas prices. Southern has some gas hedged, but not a big percentage. Had some sold it when it hit 71, wish I had waited until high 70s.
The PSC will give them the relief they need for high natural gas prices. With their dividend at 4.5 percent I would rather have my money in T bills until natural gas prices go down to around 4.00
Also have a very close family member that works for them. They pay their employees well.
You are right about Vogel, they started fueling #3 recently. Things are looking good there
The PSC will give them the relief they need for high natural gas prices. With their dividend at 4.5 percent I would rather have my money in T bills until natural gas prices go down to around 4.00
Also have a very close family member that works for them. They pay their employees well.
You are right about Vogel, they started fueling #3 recently. Things are looking good there
Posted on 10/12/22 at 7:20 pm to skewbs
Dividends at that level are no longer as attractive when you can get close to that in a CD.
Posted on 10/12/22 at 8:24 pm to GAFF
Just did a search, sounds like they are trying to load fuel this month. I feel like once the fuel gets in, that's a sign they are close enough.
Edit: didn't see the post two above me.
Edit: didn't see the post two above me.
This post was edited on 10/12/22 at 8:25 pm
Posted on 10/13/22 at 7:10 am to NukemVol
I’ve owned it for years but my cost per share is like $48
Posted on 10/13/22 at 7:21 am to skewbs
Average cost is around 55, but I’m not bullish. Their CEO is more focused on short term stock gains and not long term.
Posted on 10/13/22 at 6:51 pm to Kipsgto
quote:
they started fueling #3 recently
They've been approved by the NRC to begin fuel load, but I don't believe they have actually started yet. We will see, but I do think they are finally "close."
Posted on 10/13/22 at 7:51 pm to skewbs
Lots of utility stock owners are income investors. The rapid increase in interest rates makes a 4.5% dividend plus stock volatility a lot less attractive than a 4.5% 2 year CD.
Posted on 10/17/22 at 11:50 am to Yeti_Chaser
Saw a headline today that they've begun loading fuel. They are close, the costs from here should be controlled provided nothing pops up in testing.
Posted on 10/17/22 at 4:37 pm to NukemVol
Yep saw that too. Fuel load for unit 3 began Thursday evening
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