During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Benzinga readers can review the latest analyst takes on their favorite stocks by visiting Analyst Stock Ratings page. Traders can sort through Benzinga's extensive database of analyst ratings, including by analyst accuracy.Below are the ratings of the most accurate analysts for three high-yield ...

Pinnacle West (NYSE: PNW ) and Avista Corporation (NYSE: AVA ) are close peers in that they’re both regulated electric utilities operating in the Western U.S., but they have rather different investment profiles. Arizona-based PNW has growthJoseph Jones, professor at The University of Southern Mississippi, has over fifteen years of experience studying the market. He focuses on portfolio construction from a dividend growth investor's perspective. The insights expressed in his research are solely his own; they ...

SPOKANE, Wash., June 09, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA), the Staff of the Idaho Public Utilities Commission, Clearwater Paper Corporation, Idaho Forest Group, LLC and Walmart Inc., parties to the Company’s electric and natural gas general rate cases, have reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission for its consideration, and which would resolve all issues in the proceeding. If approved, the settlement agreement is designed to increase annual b ...

I initially covered Avista Corporation (NYSE: AVA ) in October last year, when I assigned it a “Buy” rating, with the stock at ~$38. My Fair Value estimate was $43.07, based on a DDM (Discounted Dividend Model) and backed by comparisons with peers and with Avista’s"Fundamental Options" would be the title of my investing style, because I combine fundamental analysis with the power of options. I use Fundamental Analysis to quantitatively and qualitatively assess individual stocks and ETFs, and I pursue variou ...

Core Points - Avista has implemented a Fire Safety Mode to enhance power line sensitivity in anticipation of the 2025 wildfire season due to increasing wildfire risks in Washington and Idaho [1][2] - The Fire Safety Mode keeps power lines de-energized during high-risk weather until it is confirmed safe to restore power, significantly reducing ignition risks despite potentially extending outage times [2] - Avista's Wildfire Resiliency Plan, initiated in 2020, includes infrastructure upgrades such as replacing wooden poles with steel, installing fire-retardant mesh, and converting overhead lines to underground service to mitigate wildfire risks [3] - In extreme conditions, Avista may execute a Public Safety Power Shutoff (PSPS) as a last-resort measure to prevent wildfires, ensuring safety through line patrols and community support during outages [4] Company Overview - Avista Utilities provides energy services to 422,000 customers and natural gas to 383,000 customers across a service area of 30,000 square miles, serving a population of 1.7 million in eastern Washington, northern Idaho, and parts of Oregon [7]

Core Insights - Avista is seeking proposals to add energy and capacity, including distributed energy resources, to meet projected resource needs and address peak demand through a Demand Response program [1][4]. Group 1: RFP Details - The all-source RFP aims to meet capacity needs of up to 415 MW for winter and 425 MW for summer in Washington and Idaho [2]. - Avista may include repowering and/or self-build resources in the RFP and is utilizing an Independent Evaluator for the process [2]. Group 2: Resource Needs - Avista's 2025 Electric Integrated Resource Plan indicates a need for new electric resources to meet growing customer demand and comply with the Clean Energy Transformation Act (CETA) for carbon-neutral electric supply by 2030 [3]. - The company is committed to acquiring at least 5 MW of Demand Response starting in 2026, which provides a cost-effective solution for peak energy demand [5]. Group 3: Proposal Requirements - The RFP is open to parties that own, propose to develop, or hold rights to resources that meet Avista's energy and capacity requirements, with minimum eligibility criteria outlined in the RFP [4]. - Hybrid proposals combining clean energy, capacity, and/or storage are encouraged, but proposals for Renewable Energy Certificates (REC) only will not be accepted [5]. Group 4: Timeline and Company Overview - Responses to the RFP are due by June 30, 2025, with instructions available on Avista's website [6]. - Avista Utilities serves 422,000 electricity customers and 383,000 natural gas customers across a service territory of 30,000 square miles, covering parts of eastern Washington, northern Idaho, and parts of Oregon, with a total population of 1.7 million [6].

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through fundamental analysis and metrics [2] - It introduces Zacks' Style Scores system, which helps investors find stocks with specific traits, particularly those with high grades in the "Value" category [3] Company Analysis: Avista (AVA) - Avista (AVA) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The stock's current P/E ratio is 14.25, which is lower than the industry average of 14.67, suggesting it may be undervalued [4] - AVA's P/B ratio is 1.15, significantly lower than the industry's average P/B of 2.08, indicating attractive valuation [5] - The P/S ratio for AVA is 1.55, compared to the industry's average of 2.28, further supporting its undervaluation [6] - AVA's P/CF ratio stands at 6.52, lower than the industry average of 8.65, reinforcing its appeal as a value stock [7] Company Analysis: Pampa Energia (PAM) - Pampa Energia (PAM) also holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong investment potential [8] - PAM's Forward P/E ratio is 6.78, significantly lower than the industry average of 14.67, suggesting it is undervalued [8] - The PEG ratio for PAM is 0.41, compared to the industry average of 1.87, indicating strong growth potential relative to its valuation [8] - PAM's P/B ratio is 1.39, lower than the industry's average of 2.08, suggesting it is undervalued [9] Conclusion - Both Avista and Pampa Energia are highlighted as potentially undervalued stocks based on various valuation metrics, making them attractive options for value investors [9]

Financial Data and Key Metrics Changes - In 2024, the company reported earnings of $180 million or $2.29 per diluted share, with utility operations demonstrating strength despite higher costs [21][22] - The first quarter of 2025 showed earnings of $78 million or $0.98 per diluted share, indicating year-over-year growth driven by strong utility performance [22][24] - The company confirmed its consolidated earnings guidance for 2025, with capital expenditures expected to be $525 million [24][26] Business Line Data and Key Metrics Changes - Avista Utilities contributed $2.28 per diluted share in 2024, near the midpoint of the original guidance range for the segment [22] - The company recognized a $0.09 loss per diluted share in other businesses due to market valuations and early-stage joint venture investments [22] Market Data and Key Metrics Changes - The company is optimistic about new large load customers, which could enhance regional grid infrastructure and provide net benefits to existing customers [33] - The company plans to issue an all-source request for proposal for up to 400 megawatts of generation targeted to be online in 2029 [14] Company Strategy and Development Direction - The company launched its 2025 to 2035 strategy playbook, focusing on innovation and resilience in the energy sector [15][16] - The preferred resource plan identifies investment opportunities in renewable resources and dispatchable generation resources [14] - The company is committed to mitigating wildfire risks and has made progress with its wildfire mitigation plan [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting increased demand for services and advancements in technology [31] - The company is adapting to inflationary pressures through regulatory adjustments and is optimistic about upcoming rate cases in Oregon and Idaho [35][36] Other Important Information - The company invested a record $510 million in capital in 2024 to ensure robust energy supply and delivery [13] - The board increased the annual dividend to $1.96 per share, targeting a competitive payout range of 65% to 75% [26] Q&A Session Summary Question: What are you most excited about for the company? - Management is excited about the current state of the energy industry, increased demand, and the engagement of employees in supporting customer service [30][31] Question: What opportunities does the company have related to data centers? - The company sees potential incremental investments and benefits to existing customers from discussions with new large load customers [33][34] Question: How is the company balancing federal and state regulation, and how is regulation impacting inflation? - The company has faced financial pressures due to inflation but believes recent rate cases will help align costs with current inflationary pressures [35][36] Question: How is the renewable strategy advancing? - The company has added several new contracts supporting renewable strategies and is looking to add more resources through the RFP process [38][39]

Financial Data and Key Metrics Changes - Consolidated earnings for Q1 2025 were $0.98 per diluted share, an increase from $0.91 in Q1 2024, reflecting an almost 8% improvement in consolidated results [5][6] - The company confirmed its earnings guidance for 2025, with a consolidated range of $2.52 to $2.72 per diluted share [21][22] Business Line Data and Key Metrics Changes - Avista Utilities showed strong performance, contributing to the overall improvement in consolidated results [6] - Capital expenditures at Avista Utilities were $100 million in Q1 2025, with expectations of $525 million for the full year [20] Market Data and Key Metrics Changes - The company is actively engaging with potential new large load customers, which could enhance regional grid infrastructure and provide economic benefits [7][10] - The RFP process for generation needs identified for 2029 is underway, with bids expected to range from 50 megawatts to 400 megawatts [8][9] Company Strategy and Development Direction - The company is focused on infrastructure improvements and safety measures to mitigate wildfire risks, following recent legislation in Washington and Idaho [10][11] - The company is pursuing a multi-pronged approach to address tariff risks and is working with suppliers to mitigate potential impacts [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting consolidated earnings targets for 2025 and highlighted the importance of regulatory outcomes in supporting financial performance [6][16] - The company anticipates long-term earnings growth of 4% to 6% from a 2025 base year [23] Other Important Information - A settlement related to the Babb Road Fire litigation is expected to have no impact on earnings due to anticipated insurance proceeds [12] - The company is committed to investing in utility infrastructure, with significant capital expenditures planned over the next several years [20] Q&A Session Summary Question: Inquiry about the RFP process and potential cost impacts from IRA changes - Management acknowledged the uncertainty and indicated that opportunities for refreshing bids may be considered during the RFP process [26][27] Question: Discussion on natural gas needs related to large load customers - Management stated that the specifics would depend on the outcomes of the RFP and ongoing discussions with large load customers [29] Question: Clarification on the wildfire settlement and its implications - Management clarified that the settlement does not set a precedent for future events, as each situation will be evaluated on its own merits [33] Question: Impact of biotech trials on the valuation of the unregulated business - Management indicated that while there could be future impacts, it is too early to assess any valuation changes from ongoing trials [35][36] Question: Concerns about under-recovery of power costs in 2025 and 2026 - Management explained that the current mechanisms are locked in and that adjustments would require a multi-year strategy [43][44] Question: Managing affordability issues with growth and self-build generation - Management emphasized the integrated resource planning process to balance costs and compliance while engaging with large load customers [45]

Financial Data and Key Metrics Changes - Consolidated earnings for Q1 2025 were $0.98 per diluted share, an increase from $0.91 in Q1 2024, reflecting an almost 8% improvement in consolidated results [5][6][16] - The company confirmed its earnings guidance for 2025 with a consolidated range of $2.52 to $2.72 per diluted share [21][22] Business Line Data and Key Metrics Changes - Avista Utilities showed strong performance, contributing to the overall improvement in earnings [6][16] - Capital expenditures at Avista Utilities were $100 million in Q1 2025, with expectations of $525 million for the full year and nearly $3 billion from 2025 to 2029, indicating a growth rate of 56% [20][21] Market Data and Key Metrics Changes - The company is actively engaging with potential new large load customers, which could enhance regional grid infrastructure and provide economic benefits [7][8] - The RFP process for generation needs identified for 2029 is underway, with bids expected to range from 50 megawatts to 400 megawatts [8][9] Company Strategy and Development Direction - The company is focused on infrastructure improvements and safety measures to mitigate wildfire risks, with recent legislation supporting wildfire mitigation plans [10][11][12] - The company is pursuing a multi-pronged approach to address tariff risks and is working with suppliers to mitigate potential impacts [13][14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about meeting consolidated earnings targets for 2025 and highlighted the importance of regulatory outcomes in supporting financial performance [6][16] - The company anticipates a return on investments in the long term, despite current volatility in the market [17][23] Other Important Information - A settlement related to the Babb Road Fire litigation is expected to have no impact on earnings due to anticipated insurance proceeds [12] - The company is committed to maintaining high safety and reliability standards in its operations [12] Q&A Session Summary Question: Impact of IRA changes on RFP process - Management acknowledged uncertainty and indicated that opportunities for refreshing bids may be considered during the RFP process [25][26] Question: Natural gas sourcing for large load customers - Management stated that the sourcing of natural gas will depend on the outcomes of the RFP and ongoing discussions with large load customers [27][28] Question: Wildfire settlement implications - Management clarified that the settlement does not set a precedent for future events, as each situation will be evaluated on its own merits [32] Question: Valuation impact from biotech trials - Management indicated that while there could be future impacts from ongoing trials, it is too early to assess their effect on valuation [33][35] Question: Forward gas and power markets impact on recovery - Management explained that there are no expected material changes in 2025 or 2026 regarding power cost recovery due to the current regulatory framework [41][42] Question: Managing affordability with growth - Management highlighted the integrated resource planning process as a tool to balance cost and compliance while engaging with large load customers [45]