The stock closed at $51.12 yesterday and dropped to $41.61 today after PCG announced the suspension of the dividend. It is going to be a wild ride, and I hope my calculated risk pays off.
It feels weird to buy a company that doesn't pay a dividend, but the potential longterm return looks very good. It really depends on if PCG is liable for the fires, and if so, how much will they be on the hook for.
Below are links to articles on the topic:
Understanding PE&G's Dividend Cut
PG&E suspends dividends, citing potential fire-related liabilities
PG&E -14% after dividend cut but some analysts say worst may be over
We may never know if PG&E caused fires, top California regulator says