Thank you. Sold the balance for a 16% gain in 3 weeks. Great call on your part.They are selling the UK operations. Paying down debt, doing buy backs. This will probably close 1Q21. However they will have to cut the dividend 30-40%.
If they do a 40% cut that would bring the yield down to around 3.5% if they do 30% around 4%. The current yield is simply unsustainable after the UK sale.
I am going to sell out of PPL as I used this as a pure yield play. They were growing their dividend every year.
Now they will become leaner and meaner. And they can grow their dividend again with a renewed focus on strictly their domestic regulated utility business.
The company is fairly valued right here. With some downside to 25-26 range easily. And we all know once they announce a dividend cut the stock price will drop.
Bank your trade today boys.
I am selling out of her now. I will reevaluate next year. I rather own some other traditional utilities with better balance sheets for the same yield (post anticipated dividend cut).