Exelon (symbol: EXC) is an electric utility that trades at 10 times earnings. It pays half its earnings out as a dividend and the stock yields nearly 5%. In the past Exelon has bought back stock and reduced debt with the other half of its free cash flow. In the past year Exelon has not spent any of its cash flow other than paying dividends and has built up over $2 billion in cash. A possible catalyst for the shares would be a potential stock buyback.
Exelon is yet another example of a steady company that trades cheaply. Investors would rather buy stocks tied to a recovery even if they are paying twice the price. I will be looking to purchase the stock during the next downdraft.