Utility and Telecommunications stocks such as T (ATT) and VZ
Verizon have been favorites of dividend and “dividend growth” investors. They
have already been trading at high valuations. There is no doubt there will be
costly damage to their infrastructure and earning along with the horrible human tragedy associated with Sands. In fact Verizon has aready acknowledged this.
Verizon says Sandy effects could be
'significant'
AP / November 5,
2012
NEW YORK
(AP) — Verizon says the effects of Superstorm Sandy on its fourth-quarter
earnings could be ‘‘significant.’’
Verizon
Communications Inc., whose downtown Manhattan facilities were flooded and are
still without power, said Friday it is working to restore communications
services to customers affected by the storm.
The hit to
earnings would mean valuations like P/E will become even more lofty (after all
the “E” will go down) and may increase the payout ration, also not a great
sign.
It seems
clear some market participants have already reacted to this possibility.
Here (above) is the chart of XLU the utilities ETF
Here is ATT (T)
And here is Verizon (VZ)
