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Update: Southern Company - Construction Stays An Overhang

Southern Company (SO) continues to stay a good investment prospect for income-seeking investors, as it offers a solid yield of 4.1%. The company has been undertaking growth investments to expand and improve its regulated operations, which will augur well for its long-term earnings growth. The company's healthy capital outlook indicates that its future growth will stay healthy. Also, as the company generates almost 90% of its consolidated earnings from regulated operations, its future earnings visibility stays high. However, as the company has been constructing new power generating plants, there is a risk of delays and cost overruns. The construction of plants will weigh on the stock price in the near term and will limit any stock price upside.

The company's operational performance stays satisfactory. The company reported an operating EPS of $0.38 for 4Q'14, in line with analyst expectations. Also, the reported operating EPS of $2.80 for full year… Read More …