Firstenergy Corp dividend yield – FirstEnergy’s Attractive Valuation Overshadowed By Unchanging Dividend & Legal Issues

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FIRSTENERGY ($NYSE:FE): FirstEnergy Corp is a publicly traded energy company based in Akron, Ohio. The company is one of the nation’s largest investor-owned utilities, with operations in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York. While the company has recently seen a surge in its stock price, its valuation remains attractive, yet overshadowed by its unchanging dividend and recent legal developments. This has been compounded by the recent legal issues the company is facing due to its alleged role in the Ohio Statehouse scandal. Last year FirstEnergy was accused of funneling millions of dollars to power brokers and lawmakers in exchange for favorable regulatory treatment. While the stock price has been largely unaffected by these issues, the uncertainty surrounding it has weighed on investor sentiment. Investors in FirstEnergy Corp have good reason to take advantage of its current attractive valuation.

Additionally, the company’s planned transition to clean energy has been well-received by investors. Overall, while FirstEnergy Corp’s attractive valuation may be overshadowed by its legal issues and dividend stagnation, there is still plenty of potential for those willing to take the risk.

Dividends – Firstenergy Corp dividend yield

FirstEnergy Corp is an American energy company that focuses primarily on the transmission and distribution of electricity to customers in the mid-Atlantic states. The company has been paying an unchanged annual dividend per share of 1.56 USD for the last three years. This has not affected its dividend yield, which has increased from 3.84% in 2021 to 4.42% in 2023, with an average yield of 4.02%.

Given the stability of dividends, investors looking for dividend stocks may consider adding FirstEnergy Corp to their portfolios. Despite a few legal issues the company has experienced in recent years, its attractive valuation makes it a strong contender for long-term investments.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Firstenergy Corp. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Firstenergy Corp. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Firstenergy Corp. More…

Key Ratios Snapshot

Some of the financial key ratios for Firstenergy Corp are shown below. More…

Share Price

Tuesday saw FirstEnergy Corp‘s stock open at $36.2 and close at $36.3, up 0.3% from its previous closing of $36.2. While the company’s valuation appears to be attractive, its unchanging dividend and various legal issues have overshadowed its potential. FirstEnergy has been under scrutiny from the Department of Justice for its involvement in the alleged bribery scandal related to Ohio’s energy bill. The company is also facing a class-action lawsuit alleging that they misled investors about their financial position and the prospects of the company.

Despite these legal and financial issues, FirstEnergy’s valuation appears to be attractive at current levels. In conclusion, while FirstEnergy’s attractive valuation may be overshadowed by its unchanging dividend and legal issues, it is important to recognize that the company is trading at a discount to its peers and the industry average, and has a manageable debt-to-equity ratio. Investors should keep an eye out for any changes in the company’s legal status or dividend policy, which may offer additional insight into the company’s future prospects. Live Quote…

Analysis

At GoodWhale, we conducted an analysis of FIRSTENERGY CORP‘s wellbeing. According to our analysis, FIRSTENERGY CORP is classified as a “rhino”, which suggests that this company has achieved moderate revenue or earnings growth. Investors interested in this company may be those looking for a stable but not necessarily high-growth investment. FIRSTENERGY CORP has an intermediate health score of 4/10 with regard to its cashflows and debt, suggesting that this company might be able to safely ride out any crisis without the risk of bankruptcy. When it comes to other indicators of its wellbeing, FIRSTENERGY CORP is strong in profitability, medium in dividend, and weak in asset and growth. More…

Peers

FirstEnergy Corp is an electric utility company that serves customers in the Mid-Atlantic and Midwest United States. The company’s competitors include Fortis Inc, CenterPoint Energy Inc, and American Electric Power Co Inc.

– Fortis Inc ($TSX:FTS)

Fortis Inc. is a large holding company that owns several utilities companies across North America. It has a market cap of $24.59 billion as of 2022 and a return on equity of 8.51%. The company’s businesses include electricity generation, transmission and distribution, natural gas distribution, and power marketing. Fortis also owns a small but growing renewable energy business.

– CenterPoint Energy Inc ($NYSE:CNP)

CenterPoint Energy Inc is an energy delivery company. The Company operates in three segments: Electric Transmission & Distribution, Natural Gas Distribution and Pipeline & Field Services. It also provides other services to utilities and energy facilities.

– American Electric Power Co Inc ($NASDAQ:AEP)

American Electric Power Company, Inc. (AEP) is a public utility holding company that engages in the generation, transmission, and distribution of electricity in the United States. It is one of the largest electric utilities in the United States with more than 5 million customers. The company has a market capitalization of $44.13 billion as of 2022 and a return on equity of 10.57%. AEP’s operations are conducted through its subsidiaries, which include Appalachian Power Company, AEP Ohio, Indiana Michigan Power Company, Columbus Southern Power Company, and AEP Texas. The company generates electricity from coal, natural gas, nuclear, and renewable sources.

Summary

FIRSTENERGY CORP is an attractive investment option due to its reasonable valuation.

However, it is also facing some headwinds, such as a static dividend yield and legal issues. With a strong balance sheet, the company is well positioned to weather any financial challenges that may arise. The potential upside of investing in FIRSTENERGY CORP comes from the potential for growth in earnings and dividends in the near future. Investors should also consider the risks associated with the current legal issues, which could affect the company’s long-term outlook.