Latest news with #PortlandGeneralElectricCompany
Yahoo
26-04-2025
- Business
- Yahoo
Portland General Electric Company (POR): Among the Overlooked Dividend Stocks to Buy Now
We recently published a list of the 10 Overlooked Dividend Stocks to Buy Now. In this article, we are going to take a look at where Portland General Electric Company (NYSE:POR) stands against other overlooked dividend stocks. In recent times, dividend investing—also known as equity income—has fallen out of favor. Once a widely followed and dependable strategy, it has gradually been overshadowed. The strong capital gains delivered by growth stocks appear to have shifted investors' attention away from the more stable and consistent returns that come with dividend-paying stocks. However, the recent market downturn, combined with the economic impact of Trump's trade policies, has brought renewed attention and appeal to these types of stocks. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 2% since the start of 2025, compared with a 6% fall in the broader market. Dividend stocks have seen mixed results over different economic cycles—performing well in some downturns and falling behind in others. They generally outpaced the broader market during the recessions starting in July 1981, March 2001, and December 2007. However, their performance lagged during the shorter recessions in 1980 and 2020. This was mainly due to dividend cuts from major firms, along with limited exposure to fast-growing tech names. For context, the steepest drop in dividends came during the 2008–09 financial crisis, when S&P dividend payouts declined by 24%, though investors still received 76% of their income. That said, while the possibility of dividend reductions is a valid concern and a potential drawback of this strategy, it shouldn't be a reason to overlook dividend stocks altogether. When incorporated thoughtfully, they can still play a valuable role in a well-rounded investment portfolio. M&G Investments noted that dividends serve as more than just income—they also signal a company's financial health and management's confidence. While short-term market returns often hinge on stock valuations, dividends play a much more substantial role in driving equity returns over longer periods, such as 10 or 20 years. The report also mentioned, citing Bloomberg's data, that dividends play a vital role in long-term returns. Over the last 25 years, nearly half of the total gains from US stocks have come from reinvested dividends and the power of compounding. During this period, the broader market delivered an average annual return of 7.4%, with 55% attributed to rising stock prices and the remaining 45% coming from reinvested dividend income. The fact that dividends are not guaranteed highlights a deeper financial story behind corporate decisions. Companies must carefully weigh the trade-off between returning profits to shareholders and keeping enough earnings on hand to support future expansion. Getting this balance right is a strategic task. A particularly high dividend payout ratio—typically above 75%, though this varies by sector—can raise red flags about sustainability. When too much profit is paid out, there's little room left to increase dividends down the line. This could eventually lead a company to scale back or even stop its dividend payments altogether, which may hold back both business growth and long-term gains in share value. Given this, we will take a look at some overlooked stocks that pay dividends. A wind farm with turbines rotating in unison, showing the power of renewable energy. For this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron's, and Business Insider and searched for stocks that remain under the radar but have strong balance sheets and sound financials. In addition, these lesser-known dividend companies also boast dividend growth track records, which make them a reliable option for income investors. After compiling our data, we picked 10 companies with the highest number of hedge fund investors, as per Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 27 Portland General Electric Company (NYSE:POR), a publicly traded utility based in Oregon, is involved in the generation, transmission, and distribution of electricity. While it may not be a prominent name in the utility space, the company holds a strategic advantage due to the presence of Transpacific communication cables within its service region. This positioning has made it an important player for the tech sector, especially as a preferred site for data center development. In the first quarter of 2025, Portland General Electric Company (NYSE:POR) reported revenue of $928 million, which fell by 0.11% from the same period last year and also missed analysts' estimates by $42.5 million. However, Q1 financial performance was boosted by robust energy demand from the high-tech sector and data centers, resulting in a 4.6% increase in overall load compared to the previous quarter, with industrial load rising by 16.4%. Portland General Electric Company (NYSE:POR) has reaffirmed its full-year 2025 adjusted earnings guidance, maintaining its projection of $3.13 to $3.33 per diluted share. This outlook is based on key assumptions, including a weather-adjusted increase in energy deliveries of 2.5% to 3.5%, along with the effective implementation of power cost and financing strategies, as well as disciplined control over operating expenses. Portland General Electric Company (NYSE:POR) ended the quarter with $11 million available in cash and cash equivalents. It generated $231 million in operating cash flow, up from $175 million in the prior-year period. On April 20, the company announced a 5% hike in its quarterly dividend to $0.525 per share. This marked the 19th consecutive year in which the company has raised its dividend, which makes it one of the best overlooked stocks that pay dividends. The stock also offers an attractive dividend yield of 5.08%, as of April 25. Overall, POR ranks 6th on our list of the best overlooked dividend stocks to invest in. While we acknowledge the potential of POR as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than POR but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
25-03-2025
- Business
- Yahoo
Portland General Electric schedules earnings release and conference call for Friday, April 25
PORTLAND, Ore., March 25, 2025 /PRNewswire/ -- Portland General Electric Company (NYSE: POR) announced today that it will host an analyst conference call and webcast at 11 a.m. ET on Friday, April 25, to review its first quarter 2025 financial results. Portland General Electric plans to release its first quarter 2025 earnings summary before financial markets open in the United States on April 25. The conference call will be hosted by Maria Pope, President and CEO; Joe Trpik, Senior Vice President of Finance and CFO; and Nick White, Manager of Investor Relations. To hear the conference call by webcast, log on to Portland General Electric's investor website at select Events & Presentations from the menu, and the webcast will be listed under Upcoming Events. A replay of the webcast will be available beginning at 2 p.m. ET on April 25. The webcast replay will be listed under Archived Events within the investor website Events & Presentations page. About Portland General Electric Company:Portland General Electric (NYSE: POR) is an integrated energy company that generates, transmits and distributes electricity to over 950,000 customers serving an area of 1.9 million Oregonians. Since 1889, Portland General Electric (PGE) has been powering social progress, delivering safe, affordable, reliable and increasingly clean electricity while working to transform energy systems to meet evolving customer needs. PGE customers have set the standard for prioritizing clean energy with the No. 1 voluntary renewable energy program in the country. PGE was ranked the No. 1 utility in the 2024 Forrester U.S. Customer Experience Index and is committed to reducing emissions from its retail power supply by 80% by 2030 and 100% by 2040. In 2024, PGE employees, retirees and the PGE Foundation donated $5.5 million and volunteered nearly 23,000 hours to more than 480 nonprofit organizations. For more information visit For more information please contact:Nick White, PGE, 503-464-8073 Source: Portland General Company View original content: SOURCE Portland General Company
Yahoo
04-03-2025
- Business
- Yahoo
Is There An Opportunity With Portland General Electric Company's (NYSE:POR) 47% Undervaluation?
Using the 2 Stage Free Cash Flow to Equity, Portland General Electric fair value estimate is US$84.75 Portland General Electric's US$45.24 share price signals that it might be 47% undervalued The US$48.79 analyst price target for POR is 42% less than our estimate of fair value How far off is Portland General Electric Company (NYSE:POR) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. See our latest analysis for Portland General Electric We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) -US$121.1m US$96.1m US$148.7m US$207.0m US$265.4m US$320.0m US$368.8m US$411.2m US$447.6m US$479.1m Growth Rate Estimate Source Analyst x2 Analyst x2 Est @ 54.76% Est @ 39.15% Est @ 28.23% Est @ 20.59% Est @ 15.24% Est @ 11.49% Est @ 8.87% Est @ 7.03% Present Value ($, Millions) Discounted @ 6.3% -US$114 US$85.1 US$124 US$162 US$196 US$222 US$241 US$253 US$259 US$261 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$1.7b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$479m× (1 + 2.8%) ÷ (6.3%– 2.8%) = US$14b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$14b÷ ( 1 + 6.3%)10= US$7.6b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$9.3b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$45.2, the company appears quite good value at a 47% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Portland General Electric as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.3%, which is based on a levered beta of 0.816. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Strength Earnings growth over the past year exceeded the industry. Weakness Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Electric Utilities market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual earnings are forecast to grow slower than the American market. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For Portland General Electric, we've compiled three additional items you should further research: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Portland General Electric (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for POR's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
