Entergy Corporation is based in Louisiana and has a power generation capacity of 22 GW. The company has a nuclear unit located in Michigan as well. Electric power generation and distribution of electricity is the core business of Entergy Corporation. Its customer base is located in the Deep South region of the US. Being a utility company, it pays a generous dividend to its shareholders. That is one advantage that investors get when they park their money in diversified utility stocks. Such businesses operate in a heavily regulated environment though they have very stable growth rates and margins. So, predicting their future cash flows is not as challenging as it may be for, say, a tech startup. Defensive investors or those looking to add some cash flow and stability to their portfolios will want to take a closer look at Entergy Corporation.
Entergy’s Utility Business & Other Information
Entergy has five segments in its utility business. They are divided according to the geographies in which Entergy serves. The five segments are Entergy Louisiana, Entergy Texas, Entergy New Orleans, Entergy Mississippi, and Entergy Arkansas. All these business segments focus on generating energy, distributing it, and offering related services to retail as well as wholesale customers. These business segments are structured as subsidiaries of Entergy Corporation. All the subsidiaries are regulated by the state utility commissions and FERC. Electric customers are more than 90% of Entergy’s overall customer base. About 10% of the customers are gas customers. Residential customers account for 39% of revenues, industrial customers contribute 25%, commercial customers also account for a little more than 25%, while wholesale and government customers make up the remaining portion. Utilities diversified stock price of Entergy Corporation is discussed in the next paragraph.
Diversified Utility Stocks
Entergy’s stock trades on the New York stock exchange. If you type ETR, you will find the stock. It last traded at $103.9 on 26th October 2021. The dividend yield at the time was 3.6%. The 52-week high of the stock was around $115.