PPL(US:PPL) zacks.comยท2024-05-27 12:46Core Viewpoint - PPL Corporation's strategic investment plans are expected to enhance its infrastructure, focusing on clean generation and domestic growth, making it a strong investment option in the utility sector [1] Growth Projections - The Zacks Consensus Estimate for PPL's 2024 earnings per share (EPS) has risen by 0.6% to $1.71 over the past 30 days [2] - The Zacks Consensus Estimate for 2025 EPS has increased by 0.5% to $1.84 in the same period [2] - PPL's long-term earnings growth rate is projected at 6.82% over three to five years [2] Debt Position - PPL's total debt to capital ratio stands at 53.3%, which is better than the industry average of 59.58% [3] - The time-to-interest earned ratio was 2.4 at the end of Q1 2024, indicating the company's capability to meet future interest obligations [3] Liquidity - PPL's current ratio is 1.28, surpassing the industry's average of 0.88, suggesting sufficient short-term assets to cover liabilities [4] Dividend History - PPL has a strong history of dividend payments and plans to increase its dividend by 6-8%, pending board approval [5] - The current quarterly dividend is 25.75 cents per share, leading to an annualized dividend of $1.03 per share [5] - The expected dividend payout ratio is between 60% and 65%, with a current dividend yield of 3.59%, significantly higher than the Zacks S&P 500 composite's average of 1.27% [5] Systematic Investments - PPL's capital investment plan focuses on infrastructure projects for generation, transmission, and distribution, with a regulated capital investment plan of $14.3 billion from 2024 to 2027 [6] - The capital investment for 2024 is projected to be $3.1 billion [6] Price Performance - Over the past three months, PPL's shares have increased by 8.5%, contrasting with the industry's average decline of 0.9% [7]