Utilities are slashing dividends, analyst says
The utilities sector is no longer the slam dunk it once was when it comes to generating income for investors.
The utilities sector is no longer the slam dunk it once was when it comes to generating income for investors.
Already this year, several firms. including Ameren Corp., Constellation Energy Group Inc. and Great Plains Energy Inc., have announced dividend cuts, according to a recent report by Ryan McLean, an analyst at Morningstar Inc. in Chicago.
“While we don’t believe these cuts will devolve into a sectorwide event, we are concerned there are more reductions to come,” he wrote in the report.
On the flip side, Mr. McLean noted that a few utilities are planning to raise dividends, including NSTAR, Southern Co. and Westar Energy Inc.
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