PPL Corp Offers Attractive Dividend Yield Above 3% in Recent Trading

During trading on Tuesday, shares of PPL Corp (Symbol: PPL) yielded over 3% based on its quarterly dividend, which has an annualized rate of $1.09. The stock saw prices dip as low as $36.16 for the day. Investors often prioritize dividends, as they have historically contributed significantly to total market returns. For example, if you invested in the S&P 500 ETF (SPY) on December 31, 1999, you would have paid $146.88 per share. By December 31, 2012, the value had decreased to $142.41, translating to a loss of $4.67 per share. However, you would have earned $25.98 per share in dividends during that same period, resulting in a positive overall return of 23.36%. Even when considering reinvested dividends, this reflects an average annual total return of about 1.6%. Hence, a yield exceeding 3% appears particularly appealing if it proves sustainable.

PPL Corp is a member of the S&P 500, classifying it as one of the large-cap companies in that index, which adds to its attractiveness.

Evaluating Dividend Sustainability

Generally, dividend rates can be unpredictable and are closely tied to a company’s profitability. For PPL Corp, examining its historical dividend performance can provide insight into whether the current dividend yield could be expected to continue and if a 3% annual yield is feasible.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.