Boost Yield on Pinnacle West Capital from 4.2% to 8.1% with Options Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 10 2025
0mins
Source: NASDAQ.COM
Dividend Predictability: Dividend amounts for companies like Pinnacle West Capital Corp are influenced by profitability, making them unpredictable; analyzing historical data can help assess the likelihood of maintaining a 4.2% annualized yield.
Options Trading Insights: The trading history and volatility of Pinnacle West can guide decisions on options, such as selling covered calls at a $95 strike, balancing potential rewards against risks.
Current Market Activity: On a recent trading day, S&P 500 options showed a high call volume of 2.06 million compared to 861,560 puts, indicating a strong preference for calls among traders.
Author's Perspective: The opinions expressed in the article reflect the author's views and do not necessarily align with those of Nasdaq, Inc.
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Analyst Views on PNW
Wall Street analysts forecast PNW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PNW is 94.14 USD with a low forecast of 85.00 USD and a high forecast of 99.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
0 Buy
8 Hold
0 Sell
Hold
Current: 93.680
Low
85.00
Averages
94.14
High
99.00
Current: 93.680
Low
85.00
Averages
94.14
High
99.00
About PNW
Pinnacle West Capital Corporation is an energy holding company that conducts business through its subsidiaries, Arizona Public Service Company (APS), El Dorado Investment Company (El Dorado) and Pinnacle West Power, LLC. The Company's business segment is its regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission, and distribution. APS provides electric service to approximately 1.4 million customers. APS is also the operator and co-owner of Palo Verde, a primary source of electricity for the southwest United States and the nuclear power plant in the United States. El Dorado owns debt investments and minority interests in several energy-related investments and Arizona community-based ventures. Palo Verde is a three-unit nuclear power plant located approximately 50 miles west of Phoenix, Arizona.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Administration Cancels $1.8B Loan Guarantee for Pinnacle West
- Loan Guarantee Cancellation: The Trump administration has canceled an $1.8 billion loan guarantee for Pinnacle West's Arizona utility subsidiary, which was intended for renewable energy deployment, significantly impacting the company's future clean energy investment plans.
- Financing Review Impact: This cancellation is part of a broader review of approximately $30 billion in financing from the Biden administration, indicating a major shift in policy direction that could lead to a more challenging financing environment for clean energy projects.
- Project Details Disclosure: The loan guarantee was earmarked for renewable energy, electric transmission lines, and a battery storage project linked to an existing solar site, and its failure to finalize will hinder Arizona's energy transition efforts.
- Subsequent Project Cancellations: In addition to Pinnacle West's project, the Department of Energy has also canceled financing commitments to other companies, including a $3 billion loan guarantee to solar developer Sunnova Energy, reflecting a diminishing government support for clean energy initiatives.
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