How Fast Things Can Change -- August 29, 2019

SRE came under some pressure earlier this month when Mexico's AMLO started messing around with LNG pipeline contracts. It was a fascinating story to watch. Apparently one of the Mexican subsidiaries surged 7% when the issue was resolved. IEnova or something like that.

So, I was curious. How has SRE been doing?

Reminder: I haven't looked at the market in several weeks. I won't look at the market when it's this volatile. I only check my cash position. If my cash position has built up enough to warrant accumulating shares in some company, I then check that specific company. At all costs, I try to avoid looking at the market in general when things are this "crazy." I checked gold and silver yesterday because someone at Starbucks mentioned that both had appreciated; I was curious, but didn't do anything with either.

Back to SRE:

• $142/share -- today -- just shy of an all-time high ($142.66 today's high vs 52-week high of $142.86)
• P/E: 20
• dividend: $3.87 (almost 3%) -- better than a 30-year US Treasury
• August 5, 2019: $132/share
• 10/132 = 7.5% 
• 1.07576 x 132 = 142 -- yup, checks
• sort of similar to IEnova or something like that

I think this company lives and dies by:

• LNG
• Mexico
• AMLO
• California fires
• California whimsies 

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From Morningstar, August 21, 2019:

We think NextEra Energy (NEE), Sempra Energy (SRE), and American Water Works (AWK) have the highest dividend growth potential, driven by strong capital growth opportunities and relatively low payout ratios.

We forecast Southern (SO) and Dominion Energy (D) will be dividend growth laggards, constrained by high payout ratios and capital investment needs.

Finally, PPL’s (PPL) struggles in the United Kingdom will probably result in no dividend growth and could lead to a dividend cut after the RIIO-ED2 regulatory outcome.