Bernstein Offers List of Names in Utilities Sector Unlikely to Maintain Dividends

Bernstein analyst Hugh Wynne published a report Friday highlighting regulated utilities companies which have frozen or cut their dividends have strongly underperformed the sector. Wynne sees the following companies as least likely to sustain their dividends:

• UNS Energy UNS;
• Avista AVA;
• Black Hills BKH;
• PNM Resources PNM;
• UIL Holdings UIL;
• Pepco holdings POM;
• Great Plains Energy GXP, and
• Consolidated Edison ED.

On the other side the spectrum, Wynne noted a list of companies he believes would be most likely to sustain dividends:

• CMS Energy CMS;
• Edison International EIX;
• Wisconsin Energy WEC;
• OGE Energy OGE;
• El Paso Electric EE and,
• Integrys Energy Group TEG.

Wynne believes Edison and El Paso shares are undervalued while Pepco is overvalued.