Not exact matches
(Reuters)- Buyout firm Leonard Green & Partners is exploring the sale of USIC LLC, a U.S.
company that locates and maintains the underground cables of
utilities, seeking a
valuation of close to $ 2 billion, including debt, according to people familiar with the matter.
In Mm Mm Good, published August 2016, the Campbell Soup
Company (CPB) and the
utility sector were highlighted to show how yield - starved investors were chasing dividend stocks to dangerously high
valuations.
Instead, the rise in the relative
valuation of
utility companies, along with other yield plays, can largely be attributed to investors» quest for increasingly scarce yield.
Rising rates can put pressure on dividend stock
valuations and also increase costs for
utilities, pipelines and other
companies that borrow money.
On the other hand, when investing at sound
valuations,
utility stocks do tend to produce significantly more cumulative dividend income than the average
company.