Gas Company Stock Prices-Too High, Too Low, Or Just Right?

Stock prices of gas distribution companies have performed well in the first 7 months of 1988. Although some observers now consider the companies overpriced, the stocks still provide an attractive dividend yield. To measure their yield in a historical perspective, current yield characteristics of gas...

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Bibliographic Details
Published in:Public utilities fortnightly (1994) 1988-09, Vol.122 (6), p.47
Main Authors: Burkhardt, Daniel A, Mosbacher, Merry L
Format: Magazinearticle
Language:English
Subjects:
Interest rates
Investments
Money markets
Natural gas utilities
Stock prices
Online Access:Get full text
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Summary:Stock prices of gas distribution companies have performed well in the first 7 months of 1988. Although some observers now consider the companies overpriced, the stocks still provide an attractive dividend yield. To measure their yield in a historical perspective, current yield characteristics of gas company stock were compared to yields from alternative investments at year-end for 2 periods: year-end 1980-1983 and year-end 1984-1987. Compared to yields available on alternative investments, gas companies on June 30, 1988, where prices very close to their historical relationships with the yields available on money market funds, utility bonds, electric utility stocks, and the Standard & Poor's 400 listing. Given historic relationships and the yields available on alternative investments, gas company stocks appeared to be priced right.
ISSN:1078-5892
1945-2578