Core Insights - The utility sector is experiencing a significant transformation driven by the increasing energy demands of artificial intelligence and related technologies, leading to a surge in investor interest [1][2][3] Industry Overview - The Utilities Select Sector SPDR Fund (NYSE:XLU) has increased by 23.4% year-to-date, outperforming the S&P 500 and approaching technology benchmarks [2] - This growth is not attributed to traditional factors like lower interest rates but rather to the rising energy needs from AI, data centers, and quantum computing [3][5] - U.S. data centers are projected to require 22% more grid power by the end of 2025 compared to 2024, and three times as much by 2030 [5] Company Highlights - **Entergy Corporation (NYSE:ETR)**: Trading at $97 per share, up 26.2% year-to-date, with plans to invest $41 billion into operations through 2029 and a long-term earnings growth forecast of 10.2% [11] - **Constellation Energy Corporation (NASDAQ:CEG)**: Trading at $331 per share, up 57% year-to-date, with several data center contracts signed at above-market prices, indicating strong growth potential [12][13] - **Nextera Energy (NYSE:NEE)**: Trading at $81 per share, up 14.3% year-to-date, recognized for its alignment with hyperscalers and a strong focus on renewable energy, offering a dividend yield of over 3% [14][15]

Market Overview - Wall Street's major indexes have reached multiple all-time closing highs recently, but the market has experienced volatility due to economic uncertainties [1][5] - The tech sector, particularly driven by AI optimism, has seen fluctuations, with significant pullbacks in stock prices due to concerns over high valuations [2][6] Economic Concerns - Investors are worried about the health of the economy, particularly with a shrinking labor market and fewer jobs being added [7] - Layoffs surged in October, totaling 153,074, which is a 183% increase sequentially and a 175% increase year-over-year [8] - The ongoing government shutdown has limited access to fresh economic data, contributing to investor uncertainty [9] Defensive Investment Recommendations - In light of market volatility, it is advisable to consider defensive stocks, particularly from the utilities sector, which are characterized by low beta values and high dividend yields [3][4][12] - Five recommended low-beta utility stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 6%, beta of 0.73, and a dividend yield of 2.02% [10][11] - **American States Water Company (AWR)**: Expected earnings growth of 4.1%, beta of 0.64, and a dividend yield of 2.72% [13][14] - **Consolidated Water Co. Ltd. (CWCO)**: Expected earnings growth of 0.9%, beta of 0.51, and a dividend yield of 1.61% [15][16] - **Entergy Corporation (ETR)**: Expected earnings growth of 6.9%, beta of 0.63, and a dividend yield of 2.49% [17][18] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.45, and a dividend yield of 3.44% [18][19]

Core Viewpoint - The article discusses the recent volatility in the stock market and highlights four companies that have recently increased their dividends, providing potential investment opportunities for cautious investors seeking steady income amidst economic uncertainty [2][3]. Economic Context - Major stock indexes have reached all-time highs, but investor sentiment remains low due to a lack of economic data from the government shutdown, the impact of tariffs imposed by President Trump, and uncertainty regarding a potential interest rate cut by the Federal Reserve [2][4]. - The Federal Reserve recently cut interest rates by 0.25 percentage points, but this did not positively affect stock prices, as Chairman Jerome Powell expressed doubts about further cuts this year [4][5]. - The ongoing government shutdown has deprived investors of key economic data, contributing to fears of a recession as the labor market continues to shrink [6]. Company Highlights - **CDW Corporation**: Announced a dividend of $0.63 per share, with a dividend yield of 1.76%. Over the past five years, CDW has increased its dividend six times, with a payout ratio of 26% of earnings [9][8]. - **California Resources Corporation**: Declared a dividend of $0.41 per share, yielding 3.32%. The company has increased its dividend four times in the last five years, with a payout ratio of 34% of earnings [11][10]. - **Exxon Mobil Corporation**: Announced a dividend of $1.03 per share, yielding 3.47%. Exxon has increased its dividend five times over the past five years, with a payout ratio of 57% of earnings [13][12]. - **Entergy Corporation**: Declared a dividend of $0.64 per share, yielding 2.49%. Entergy has increased its dividend six times in the last five years, with a payout ratio of 59% of earnings [14][12].

Utility Entergy's unit and pipeline firm Energy Transfer have signed a 20-year agreement to deliver natural gas to North Louisiana, the companies said on Tuesday. ...

Accessibility StatementSkip Navigation NEW ORLEANS, Nov. 3, 2025 /PRNewswire/ -- The board of directors for Entergy Corporation today announced the election of retired Admiral Frank Caldwell as an independent director, effective Nov. 1. "Admiral Caldwell brings a strong understanding of nuclear operations and results-oriented leadership to Entergy's board," said Drew Marsh, Entergy chair and CEO. "As we work to meet the needs of our customers and the growing demand of our region, his experience brings anot ...

Core Points - Entergy's board of directors declared a quarterly dividend payment of $0.64 per share, an increase of $0.04 per share, payable on December 1, 2025, to shareholders of record as of November 13, 2025 [1] - Entergy has consistently paid cash dividends on its common stock since 1988 [1] Company Overview - Entergy produces, transmits, and distributes electricity to approximately 3 million customers across Arkansas, Louisiana, Mississippi, and Texas [2] - The company is focused on investing for growth, improving reliability and resilience of its energy system, and maintaining affordable energy rates for customers [2] - Entergy is investing in cleaner energy generation, including modern natural gas, nuclear, and renewable energy sources [2] - The company delivers over $100 million in economic benefits annually to the communities it serves through philanthropy, volunteerism, and advocacy [2] - Entergy is a Fortune 500 company headquartered in New Orleans, Louisiana, with around 12,000 employees [2]

Environmental Commitment - Entergy Corporation's commitment to achieve net-zero carbon emissions by 2050, with increasing investments in renewable power generation and carbon capture technologies [24] - Entergy's strategies to reduce tax payments may influence financial results and future cash flows [24] - The company is focused on enhancing its carbon-free energy capacity while managing the associated financial impacts [24] Demand and Growth - The company anticipates significant growth in demand from large data centers, impacting electricity demand and capital project execution [22] - The anticipated load growth may not materialize, posing risks to economic conditions in the Utility service area [24] - Total electric energy sales for the Utility increased by 4% from 39,474 GWh in 2024 to 41,203 GWh in 2025, with residential sales up 2%, commercial sales up 1%, and industrial sales up 7% [46] Financial Performance - Entergy's net income attributable to the corporation for Q3 2025 was $693.8 million, an increase from $644.9 million in Q3 2024, representing a growth of approximately 7.6% [37] - Operating revenues for Entergy increased to $3.797 billion in Q3 2025, up from $3.370 billion in Q3 2024, reflecting a rise of about 12.6% [39] - Other income increased to $79.1 million in Q3 2025, compared to $66 million in Q3 2024, marking a growth of approximately 19.7% [37] Operating Expenses and Costs - The company is facing increased costs and capital expenditures due to changing regulatory requirements and economic conditions [22] - Other operation and maintenance expenses increased from $714 million in Q3 2024 to $764 million in Q3 2025, driven by higher power delivery expenses and compensation costs [47] - Power delivery expenses rose by $44 million primarily due to higher vegetation maintenance costs, while non-nuclear generation expenses increased by $19 million due to a higher scope of work during plant outages in 2025 compared to 2024 [75] Regulatory and Compliance Issues - Entergy's participation in MISO is subject to regulatory and operational challenges, which may affect cost recovery and market conditions [20] - Changes in environmental laws and regulations could affect compliance costs and operational strategies [22] - Entergy is committed to maintaining the reliability of its nuclear generating facilities amidst regulatory scrutiny and public opposition [20] Capital Investments and Projects - Entergy plans to invest approximately $41 billion in capital from 2026 to 2029, including $12 billion in 2026 and $11 billion in 2027, focusing on modernization and expansion of its Utility operations [107] - Entergy Arkansas filed for a long-term special rate contract with Google for a new data center, with a hearing scheduled for November 2025 [108] - Entergy Louisiana filed for approval of three new combined cycle combustion turbine generation resources totaling 2,262 MW, alongside a new 500 kV transmission line, to support a new data center for Meta Platforms, Inc. [118] Debt and Financing - The debt to capital ratio decreased from 65.3% on December 31, 2024, to 64.3% on September 30, 2025 [96] - Entergy Corporation has a credit facility with a borrowing capacity of $3 billion, with no borrowings made as of September 30, 2025, and an estimated interest rate of 5.76% applicable to potential borrowings [99] - Entergy expects to issue approximately $4.4 billion of equity through 2029, with $1.9 billion already contracted under forward sale agreements [105] Shareholder Returns - The Board declared a dividend of $0.64 per share in October 2025 [132] - The company declared common stock dividends totaling $258,249 for the nine months ended September 30, 2025 [167] Cash Flow and Liquidity - Net cash provided by operating activities increased by $823 million for the nine months ended September 30, 2025, compared to the same period in 2024 [134] - Net cash flow used in investing activities increased by $1,209 million for the nine months ended September 30, 2025, primarily due to a $1,712 million increase in non-nuclear generation construction expenditures [136][137] - Entergy had $1,517 million in cash and cash equivalents at the end of the period, up from $1,412 million in 2024 [133] Taxation - The effective income tax rate for Q3 2025 was 22.7%, compared to 25% in Q3 2024, primarily due to state income tax accruals [57][58] - Taxes other than income taxes increased due to higher assessments and local franchise taxes resulting from increased retail revenues in 2025 compared to 2024 [74] Future Outlook - Entergy Arkansas's 2026 projected rate of return on common equity is 8.45%, resulting in a revenue deficiency of $68.9 million, with a total proposed revenue change of $117.7 million [193] - Entergy Louisiana's 2025 test year filing showed an earned return on rate base of 7.64%, with no change in formula rate plan revenues [211] - The company plans to offset the COVID-19 regulatory asset with a regulatory liability for deferred earnings related to low-interest debt, with approval from the LPSC [210]

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Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.53, raising the bottom of its guidance by $0.10 due to strong financial results and sales growth [4][21] - Weather-adjusted sales increased approximately 4.5%, with industrial sales growing more than 7% primarily from new and expansion customers [21][22] Business Line Data and Key Metrics Changes - The company achieved a first quartile net promoter score for utility residential service, maintaining this position [4] - The digital LIHEAP platform received a Silver Best Practices Award for excellence in serving vulnerable customers [7] Market Data and Key Metrics Changes - Entergy Mississippi announced a $300 million investment to improve grid reliability, expected to reduce outages by half within five years [8] - The data center pipeline has grown to 7-12 GW based on active customer conversations, indicating strong demand for energy infrastructure [9][10] Company Strategy and Development Direction - The company is focused on maintaining low rates for customers while managing fuel volatility through hedging programs [5][6] - Entergy is actively pursuing new industrial customers, including hyperscale data centers, while ensuring they contribute fairly to energy infrastructure costs [7][9] - The capital plan for 2026-2029 is set at $41 billion, with $4.4 billion in equity planned, indicating a proactive approach to funding growth [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth outlooks, supported by strong customer demand and regulatory mechanisms [4][19] - The company anticipates continued significant transmission investment driven by customer needs and growth in service territories [49][50] Other Important Information - The company has secured approximately 75% of critical equipment for owned projects, with a clear line of sight for the remaining 25% [11] - Entergy Texas was awarded $200 million in grant funding for resilience projects, enhancing storm readiness without additional costs to customers [15] Q&A Session Summary Question: Updated CapEx plan and 4.5 GW of power island equipment - The $41 billion CapEx includes capital needed to support forecasted load, with the 4.5 GW supporting additional customers in the pipeline [31] Question: Long-term EPS growth outlook beyond 2030 - Management indicated good visibility through 2029, with potential for long-term growth opportunities as additional customers are secured [32] Question: Customer demand for renewable components - The company is exploring all types of resources, including gas and renewables, to meet customer needs [34] Question: Arkansas project ramp-up and local stakeholder views - The project is in early stages, with strong local support and expected to proceed as planned [46] Question: Impact of large customers on existing customers - Large new customers are expected to help existing customers by covering incremental costs during construction [106] Question: Potential for onsite power generation by data centers - While data centers could self-generate, they prefer to avoid capital investment in generation, allowing Entergy to build nearby generation facilities [103] Question: Arkansas rate case filing - The team is still working on the case, but benefits from large new customers are expected to be outlined in the filing [106] Question: Clarification on 8 GW for additional growth - The 8 GW represents growth opportunities above the forecast, with a total of 19.5 GW now identified [87] Question: Renewable commitments for hyperscalers - Additional renewables are expected to be associated with large hyperscale deployments, complementing gas commitments [88]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $1.53, raising the bottom of its guidance by $0.10 due to strong financial results and sales growth [3][19] - Weather-adjusted sales increased approximately 4.5%, with industrial sales growing over 7% primarily from new and expansion customers [19][20] Business Line Data and Key Metrics Changes - The company achieved a first quartile net promoter score for utility residential service, maintaining this position [3] - The digital LIHEAP platform received a Silver Best Practices Award for excellence in serving vulnerable customers [5] Market Data and Key Metrics Changes - Entergy Mississippi announced a $300 million investment to improve grid reliability, aiming to reduce outages by half within five years [6][7] - The data center pipeline has grown to 7 to 12 gigawatts based on active customer conversations [8][9] Company Strategy and Development Direction - The company is focused on maintaining low rates for customers while managing fuel volatility through hedging programs [4] - Entergy is actively pursuing new industrial customers, including hyperscale data centers, while ensuring they contribute fairly to energy infrastructure investments [5][8] - The capital plan for 2026 through 2029 is set at $41 billion, with $4.4 billion in equity planned [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth outlooks, supported by a strong customer pipeline and ongoing investments in reliability and resilience [18][24] - The company is well-positioned to respond to national security priorities through rapid energy deployment [17][18] Other Important Information - The company has secured approximately 75% of critical equipment for owned projects, with a clear line of sight for the remaining 25% [10] - Entergy Texas was awarded $200 million in grant funding for resilience projects, with no cost to customers [13] Q&A Session Summary Question: Update on CapEx plan and 4.5 gigawatts of power equipment - The $41 billion CapEx includes capital needed to support forecasted load, with the 4.5 gigawatts supporting additional customers [28] Question: Long-term EPS growth outlook beyond 2030 - The company has good visibility through 2029 and sees long-term opportunities beyond that period [29] Question: Customer resource mix preferences - The company is exploring both gas and renewable resources to meet customer needs, with an all-of-the-above approach [30][31] Question: Timeframe for 4.5 gigawatts of power equipment - The six units are expected to support commercial operations in 2031 and 2032, with ongoing discussions for additional turbine supply [46][47] Question: Potential for onsite power generation by data centers - The company is building generation close to customer locations, and customers prefer to avoid capital investment in generation [81] Question: Arkansas rate case filing - The team is still working on the case, and benefits from large new customers will be outlined in the filing [84] Question: Breakdown of the 12-gigawatt pipeline - The pipeline includes opportunities at various stages but does not include signed ESAs until certainty is achieved [63] Question: Clarification on 8 gigawatts for additional growth - The company clarified that the 8 gigawatts is part of the overall forecast, with additional growth opportunities identified [72] Question: Renewable commitments for hyperscalers - The company expects additional renewables associated with large hyperscale deployments, with ongoing discussions for solar projects [73]