Read Disclaimer
Barron's is an American weekly newspaper published by Dow Jones & Company, a property of News Corp. that covers US financial information, market developments, and relevant statistics. Each issue provides a summary of the previous week's market activity as well as news reports and an informative outlook on the week to come. The Top 100 Independent Advisors as identified by Barron’s is published annually. Scoring for the publication reflects the assessment of data provided by the nation’s most productive advisors. Investment performance is not an explicit component because not all advisors have audited results and because performance figures often are influenced more by clients’ risk tolerance than by an advisor’s investment-picking ability. Barron’s states that ranking reflects the volume of assets overseen by the advisors and their teams, revenues generated for the firms and the quality of the advisors' practices. Furthermore that the scoring systems assigns a top score of 100 and rates the rest by comparing them with the top-ranked advisor. Anchor Capital did not provide data to Barron’s to be included in this assessment and receipt of this designation is no way indicative of any individual client or investor’s experience with the Company or of any client, investor or fund’s future performance. Anchor Capital is not affiliated with Barron’s in any way.

Portland General Electric Company

POR: NYSE

Portland General Electric Company (POR) generates, transmits and distributes electricity to 1.9 million people in the state of Oregon.[1] The company’s service area covers 46% of the state’s population and includes 4,000 square miles and 51 cities, including Portland and Salem.[2] Portland generates power from gas, hydro, wind, solar and coal, and is investing more in reliable and clean energy.[3]

Investment thesis

We believe Portland covers a healthy economic region with positive demographic trends, demonstrated by low unemployment, customer growth and above average GDP and population growth.[4] This growth has supported 4% annual dividend increases the last ten years and 6% the last three.[5] As with all regulated utilities, though, we wanted to make sure that the growth will continue and that the regulatory environment is favorable.

Confirmation through research

Much of the area’s growth has come from an influx of technology firms and data centers as they migrate from the Silicon Valley region to more affordable areas.[6] We believe that this trend will continue and will support above average population growth, thus driving greater demand for electricity.

The Oregon Public Utility Commission determines Portland’s allowed return on equity. So far, the regulatory environment has been favorable and the three Governor-appointed commissioners have positions through 2019, 2020 and 2021.[7] Historically, the company has grown earnings at a 5-7% rate and there is an opportunity for higher growth if Portland wins a wind RFP later this year.[8]

Variant Perception

We believe that Portland’s unique growth profile and geography make it a strong takeout candidate. Even without a takeout, we believe that Portland will continue to grow the dividend and earnings supported by positive local economic conditions.