Summary
- PPL shares have gained over 17% in the last 12 months.
- Shares yield over 5% at the current market price, naturally making PPL shares an attractive consideration for any dividend growth investor's portfolio.
- Shares are trading at a discount to my fair value estimate.
Introduction
As global stock markets plummeted for nearly three months starting from September last year, many investors were forced to re-think their investment strategies and allocate capital more efficiently to achieve an acceptable level of diversification. Many investors got a reality check regarding the state of the U.S. economy in this period, and the partial inversion of the yield curve created havoc in markets. Only then did investors realize the need to move on from stories and invest in facts, and this prompted many investors to go back to basics and identify which stocks were poised to do relatively better if markets continue to crash, or if the U.S. enters an economic recession.
This formed the backdrop for me as an investor and an analyst to do a couple of things.
- Write an article on the inverted yield curve and its implications, which was well received by Seeking Alpha readers.
- Expand my search of undervalued stocks to include utilities and non-cyclical companies.
Regardless of whether a stock makes way into my watch list after the analysis is done, I have made it a habit to write on any stock that I research about so that our readers can get something out of the research I did.
In this analysis, I discuss PPL Corporation (NYSE:PPL), the latest company I researched about.
