PPL Corporation

Ticker: PPL, Buy below $28.

PPL Corporation is an utility serving electricity to customers in US and Great Britain.

Why I Would Buy

  1. Defensive Buy – Diversified, good quality utility, a defensive play during a coronavirus meltdown.   
  2. Dividend – 5%+ dividend.
  3. Investment Grade Ratings – PPL long term debt is rated BBB/A- by leading rating agencies.
  4. Return on Equity: 10+% returns on equity annually for most of last decade.

What Could Go Wrong

  1. Not A Screaming Bargain – Even with the crash, PPL is trading at 14 times earnings.
  2. Expanding Sharecount – Float has doubled in the past decade.

Disclosure: I am long PPL, please read additional disclosures here before taking any action based on this post.