At 02/22/2010 11:07:18 I bought 1/4 more of my target purchases for ED.
Thoughts: The dividend rate is 5+%, paying much better than any fixed income investment. Based on the financial review, this stock appears to be a safe income stock for the year. I look at this as a 1 year store of money. I currently have 1/2 of my target purchase of this stock.
Many good factors lead me back for more of this stock. I bought 1/4 position originally on 5/18/09 for $34.89 so 2 quarterly dividend payments have been paid.
The Street rates ED a solid buy with an A- rating as of Feb 21st. They cite these factors:
1. The revenue growth came in higher than the industry average of 12.2%.
2. Improved earnings per share by 25.9%
3. The net income increased by 25.9%
4. Going forward the market expects an improvement in earnings ($3.27 versus $3.16)
Concerns: Industry outlook is grim. Lower fuel prices and electricity rates are hurting profits and the economic
slowdown has reduced demand. However, increased need for all types of generation capacity – natural gas,
coal, nuclear, and renewable energy is anticipated.
I feel safe to hold ED for another year. But I will keep an eye on this stock.