Entergy Now Yields 5.1%

I’m not even going to pretend that I’m an expert on nuclear issues, but I’ll point out that shares of Entergy (ETR) are down sharply today. The stock is down 11% for the week and it just touched a 52-week low.

Entergy has ten nuclear plants, and it’s the second-largest nuclear energy provider in the country. The company considered spinning off some of its nuke assets a year ago, but regulators didn’t go for it.

Entergy currently pays an 83-cent quarterly dividend. At the current price, that yields 5.1% which is a lot more than you can find in other places. It’s also likely that the company will raise its dividend next month.

I’m not recommending the stock, but I’m pointing out how short-sighted the market can be. The way to “play” what’s happening in Japan isn’t to seek out a rebuilding stock or some contamination stock. Instead, it’s to see what good stocks have been brought down for transient reasons.

Posted by on March 17th, 2011 at 2:24 pm


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