5-Star Stocks Poised to Pop: FPL

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power plant operator FPL Group (NYSE: FPL  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at FPL's business and see what CAPS investors are saying about the stock right now.

FPL facts

Headquarters (Founded)

Juno Beach, Fla. (1984)

Market Cap

$20.2 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$15.99 billion

Management

Chairman/CEO Lewis Hay, III (since 2001)
CFO Armando Pimentel, Jr. (since 2008)

Return on Equity (Average, Past 3 Years)

13.5%

Cash / Debt

$164 million / $17.8 billion

Dividend Yield

3.8%

Competitors

Southern Co. (NYSE: SO  )
Progress Energy (NYSE: PGN  )

CAPS Members Bullish on FPL Also Bullish on

Johnson & Johnson (NYSE: JNJ  )
Apple (Nasdaq: AAPL  )

CAPS Members Bearish on FPL Also Bearish on

Amazon.com (Nasdaq: AMZN  )
Home Depot (NYSE: HD  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96.8% of the 972 members who have rated FPL believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star IsleGirl2010, who is ranked in the top 6% of our community, and GonzoDeluxe.

Just four days ago, IsleGirl2010 tapped FPL as a particularly powerful alternative:

They are leading the way for clean energy which is the future. Their infrastructure for natural gas is already in -- a big advantage. Price increases probably won't hurt since people can't do without utilities. Dividends also never hurt!

In a pitch from two weeks earlier, GonzoDeluxe expands on the stock as a great way to go green:

They are a traditional utility company, so they will benefit from the shift as motor vehicles move into hybrid and battery powered tech, plus they are moving aggressively into wind power and some solar. They could also benefit from their experience with nuclear power as new nuclear permits start to pick up again. On the downside, they still use a lot of fossil fuel and that will become more expensive over my 2-4 year time frame. Meanwhile take the 3.5 % dividend yield and enjoy.

What do you think about FPL, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Southern Co. and Johnson & Johnson are Motley Fool Income Investor picks. Apple and Amazon are selections of Stock Advisor. Home Depot is a choice Inside Value. The Fool's disclosure policy always gets a perfect score.


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  • Report this Comment On November 05, 2009, at 10:05 AM, joaquinsanchez wrote:

    Very interesting article, but nothing I didn't already know. I've been an FPL stockholder for several years.

    They never miss a quarterly dividend and there's an increase every year. I would recommend it to anyone for short term or for long term...savings, dividend reinvestment, retirement, etc.

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