This utility is expected to grow earnings at an annual rate of 22.90% over the next five years. The shares have a current annual dividend yield of 3.47%, paid quarterly.
Vistra Corp. (VST)
From The Stock Spin-off Investing Newsletter
In 2007, in the largest LBO in history, TPG, KKR, and Goldman Sachs teamed up to buy TXU for $45bn ($8.3bn in equity and $36.7bn in debt).
By 2014, TXU had to file Chapter 11 due to its crushing debt load. Vistra is the post-reorg equity of TXU Corporation.
Vistra is one of the largest power producers (nuclear, coal, and natural gas) and retail energy providers in the U.S.
Vistra took a big hit when it announced a $900mn to $1.3bn adverse impact due to Texas’ recent winter storm.
Since the announcement, Vistra has lost $2.9bn in market cap, which seems like an overreaction given the company has plenty of liquidity.
Management agrees and has been buying stock in the open market.
Richard Howe, CFA, The Stock Spin-off Investing Newsletter, stockspinoffinvesting.com, 617-750-7454, March 18, 2021