Tuesday, January 8, 2019

Clearway Energy at New Low Price

Does anyone really think that Clearway Energy will negotiate a lower price for electric energy supplied to Georgetown when the stock price is going lower?


The stock was created in May 2018 and traded at $17/share. It closed today at $15.98/share and appears to be on a downward trend.

When the investors are losing money on the share price, why would they give up any of the dividends? The dividend rate is about 8% at this price and is paid to the investors quarterly. The dividends are created by the income from the operations of the energy generators who sell energy to distributors like Georgetown. Therefore, they have disincentives to reduce their income.

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