EDP Is Sufficiently Protected From FX And Emerging Market Risks (OTCMKTS:EDPFY)

EDP (OTCPK:EDPFY)(OTC:ELCPF) is a European utilities company that after a run-up from March lows has slid back. Utilities continue to remain a sector of interest to the prudent investor, as the eventualities of COVID-19 remain nebulous with continuing questions around vaccine efficacy, timing and the extent of the economic damage once stimulus comes to a close. EDP, like many European utilities are focused on two activities, generation on one hand (primarily in renewables), and distribution/transmission on the other. Now trading at levels where the dividend yields 4.4%, it screens as an interesting income proposition. With emerging market exposures being a key issue for some utility companies, EDP is substantially spared thanks to the substantial risk sharing with minority holders in their Brazilian operations. With good insurance from their positive geographic mix, their ample dividend should be strongly considered by income investors.

Summary Segment Data

Before we look into their

Read More