Entergy (ETR) posted better-than-expected third-quarter results, but shares in this electric utility haven’t done much this year. The stock is down 1% in 2013.
It’s not really Entergy’s fault, even though expenses are on the rise and a planned spinoff of its electric-transmission business was pushed into next year.
Rather, it’s just a bad time to be a utility — especially an electric company — in a world of record-low natural gas prices. Indeed, the entire utility sector of the S&P 500 is lagging the broader market by about 10 percentage points so far this year.
Behind all the noise in the most recent results was the happy fact that Entergy posted higher revenue — no mean feat in the current price environment. And you don’t have to worry about the dividend. Solid cash flow means you can bank on those generous payouts.