The company plans $3.4 billion in capital expenditures this year, rising to $4 billion in 2025. Those investments will produce profits once utility regulators let them earn a return.
FirstEnergy is almost entirely an electric distribution company, reducing the risks associated with power generation. It owns Ohio Edison, Jersey Central Power & Light, West Penn Power, and other utilities.
“It has a solid dividend and growth story,” says John Bartlett, president and portfolio manager at Reaves Asset Management, which runs the Reaves Utility Income fund (UTG).
Barron's: $FE Buy This Utility Stock. It Should Thrive as America Goes Electric