Food, fun, Mardi Gras and heat are all part of the Louisiana landscape, and where there’s heat, there has to be a way to cool down the masses.
That’s where New Orleans-based Entergy (NYSE:ETR) comes into the picture.
After starting out in 1949 as Middle South Utilities, the name Entergy — derived from a combination of “Enterprise, Energy and Synergy” — was adopted in 1989. The company is made up of energy companies acquired and merged in from Texas, Arkansas, Mississippi and Louisiana. Today, the energy conglomerate services small portions of each of those states.
Entergy operates under two segments: Utility and Wholesale Commodities. The utility sector generates, transmits and distributes power throughout portions of the southeast as previously identified, with just under 3 million customers. The wholesale commodities group owns and operates six nuclear plants, selling power to customers and also trading power on the grid to other parts of the country.
Entergy generates $11 billion in revenue and just under $1 billion in net income while employing 15,000 in and around their grid space. With an $11 billion market cap and a dividend that now yields a shade over 5%, the stock is a favorite in the region.
So the next time you are enjoying one of New Orleans’ favorite beverages and listening to jazz in the cool comfort of a French Quarter bistro, remember who is keeping you comfortable: Entergy.
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Marc Bastow is an Assistant Editor of InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.