Replies to post #9 on Wisconsin Energy Corporation (WEC)

[Timothy Smith]

$WEC holding and bullish. Caveats however: When it comes to what matters most, a safe and growing yield, WEC Energy may not be as overvalued as it initially appears, especially given that the company’s long-term earnings growth rate is higher than most utilities' growth profiles.

[Timothy Smith]

2) Assuming the company’s earnings compound by 5% to 7% annually as management expects, WEC’s stock offers annual total return potential of about 8% to 11% (3.6% dividend yield plus 5% to 7% annual earnings growth).

[Timothy Smith]

3) WEC Energy’s valuation doesn’t seem totally unreasonable today, but it’s not exactly a bargain either. Perhaps if U.S. interest rates rise three times in 2017 like the Federal Reserve is predicting, then utilities as a whole will finally experience a meaningful pullback.

[Timothy Smith]

4) A stock price in the low $50s (versus $58 today) would push WEC’s yield up to 4%, which would represent a seemingly attractive investment opportunity considering the stock’s stability (WEC’s beta of 0.04 means WEC has historically been 96% less volatile relative to the S&P 500) and long-term total return potential.