Core Insights - Evergy, Inc. (NASDAQ:EVRG) is recognized as one of the 12 best utility stocks to buy for dividends [1][2] - The company serves approximately 1.8 million residential and commercial customers in Kansas and Missouri [2] - Barclays raised Evergy's stock price target from $73 to $80, maintaining an 'Outperform' rating, anticipating a quieter third-quarter report but a refreshed business plan in the fourth quarter [3] Financial Performance - Evergy's share price has increased by over 27% since the beginning of 2025, reaching an all-time high [5] Strategic Developments - Evergy is exploring opportunities in the nuclear energy sector, having signed a Memorandum of Understanding (MoU) to investigate sites for a nuclear power project and energy storage system using TerraPower's Natrium technology [4]

Core Insights - Evergy Inc. (NASDAQ:EVRG) is considered a top pick for retirement portfolios, with UBS maintaining a Buy rating and a price target of $81 [1] - Analyst William Appicelli anticipates that Evergy could increase its growth rate from 4-6% to 6-8% in its fourth quarter update [1] Financial Projections - UBS has raised its capital expenditure projections and earnings per share estimates due to expected generation capacity to manage an additional 2GW load from data centers [2] - Evergy is finalizing deals for two major data center projects, which may lead to a capital expenditure of approximately $5 billion [2] Company Overview - Evergy, formed in 2018 from the merger of Great Plains Energy and Westar Energy, has a generating capacity of 16,000 megawatts across over 40 power plants, serving 1.7 million customers in Kansas and Missouri [3]

Core Insights - The article discusses the strategy of selecting high-yield dividend stocks from the Global X SuperDividend US ETF (DIV), emphasizing the importance of both yield and price stability in the current market environment [1][2][4]. Group 1: Investment Strategy - The focus is on identifying three stocks from the DIV ETF that not only offer attractive dividend yields but also exhibit favorable price patterns, minimizing the risk of capital loss [1][8]. - The article highlights the necessity of analyzing stocks for their potential to provide price gains alongside high dividend payments, particularly in a volatile market [8][16]. Group 2: Market Context - Dividend stock investing has been experiencing a downturn, with less emphasis on high, consistent dividend payouts compared to previous years [6][16]. - The current market conditions require a higher standard for what constitutes a good yield-focused total return investment, as many traditional high-yield stocks have suffered significant price declines [3][16]. Group 3: Stock Analysis - The three highlighted stocks include Verizon (VZ), Clearway Energy Class C (CWEN), and Evergy (EVRG), each with varying yields and historical volatility [10][11][12]. - VZ offers a yield of 6.3%, while CWEN is approaching a recent high with a yield above 6%, and EVRG, despite a lower yield of 3.5%, has shown promising price movement [13][14][15].

Core Insights - Evergy, Inc. (EVRG) is focusing on expanding its operations in the transmission market and aims to achieve carbon neutrality by 2045 through planned investments and its Integrated Resource Plan [1][4]. Group 1: Investment Plans and Infrastructure - Evergy plans to invest $2.34 billion in infrastructure in 2024 to modernize the grid and replace aging equipment, with a target of nearly $17.5 billion in capital investments from 2025 to 2029, including approximately $6.17 billion for renewable generation [3][8]. - The company is actively developing renewable projects with a total capacity of 800 megawatts (MW), with 500 MW included in its 2-3% demand forecast through 2029 [4]. Group 2: Environmental Goals - Evergy's Integrated Resource Plan aims for net-zero emissions by 2045, with an interim goal of a 70% reduction in carbon dioxide emissions by 2030 [4][8]. Group 3: Revenue Generation - Evergy's transmission and distribution operations are advantageous for revenue generation, allowing efficient electricity delivery from power plants to consumers [2][8]. Group 4: Challenges and Risks - The company faces potential delays in capital projects due to permit issues, equipment availability, or increased costs, which could negatively impact profitability [5]. - Seasonal electricity sales and changing weather conditions can significantly affect overall performance, with mild winters and summers potentially reducing electricity demand [5].

Core Insights - TerraPower, Evergy, and the Kansas Department of Commerce have signed a memorandum of understanding (MOU) to explore the potential siting of TerraPower's Natrium® reactor and energy storage system in Kansas [1] Group 1 - The collaboration aims to evaluate site-specific characteristics for the potential advanced nuclear power project [1]

Core Viewpoint - The article emphasizes the importance of dividend-paying stocks for steady wealth accumulation and highlights the author's extensive experience in investment advising and stock market analysis [1] Group 1: Author's Background - The author has over 10 years of experience as a Registered Investment Advisor and has authored multiple financial books [1] - Prior to becoming a Registered Investment Advisor, the author spent 15 years as a corporate manager at Georgia-Pacific Corp [1] - The author has also operated various businesses, including manufacturing and export marketing management [1] Group 2: Investment Philosophy - The mission of Guiding Mast Investments is to assist investors in maintaining a steady pace of wealth accumulation [1] - The focus is on timely selections of dividend-paying stocks, which are considered crucial for financial growth [1] - The author previously created an investment newsletter in the late 1990s that concentrated on dividend reinvestment plans (DRIPs) [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.82 per share for Q2 2025, exceeding internal budget and overcoming approximately $0.09 of unfavorable weather impacts [6][26] - Year-over-year adjusted earnings decreased from $0.90 per share in Q2 2024 to $0.82 per share in Q2 2025, attributed to a 26% decrease in cooling degree days [26][27] - The company is on track for the midpoint of full-year 2025 adjusted EPS guidance of $3.92 to $4.12 per share [6][32] Business Line Data and Key Metrics Changes - The company achieved a 1.4% increase in weather-normalized demand in Q2 2025, driven by growth in residential and commercial usage [30] - The exit from the Evergy Ventures business resulted in losses of approximately $0.08 million in Q2 2025, with the remaining book value of these investments at approximately $100 million [28][29] Market Data and Key Metrics Changes - The company anticipates a peak demand of 1.1 gigawatts with 500 megawatts online by 2029, supporting an estimated demand forecast of 2% to 3% through 2029 [14][16] - The economic development pipeline includes a robust backlog of over 15 gigawatts, with significant interest from large customers in Kansas and Missouri [11][12] Company Strategy and Development Direction - The company reaffirms a long-term growth target of 4% to 6% through 2029, based on the 2025 midpoint of $4.2 per share [8][32] - The strategy focuses on affordability, reliability, and sustainability, with an emphasis on grid modernization and new generation resources [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of adjusted EPS guidance for 2025, citing strong operational execution and favorable economic conditions [32] - The company is well-positioned to attract new customers and investments, with ongoing discussions and settlements in regulatory proceedings [20][78] Other Important Information - The Kansas Corporation Commission approved settlement agreements for new natural gas plants and solar farms, reflecting a collaborative regulatory environment [7][19] - The company is committed to investing in infrastructure to support economic development and enhance service reliability for existing and new customers [21][24] Q&A Session Summary Question: Can you expand on the timing to derisk equity needs beyond 2025? - Management indicated no planned equity raise in 2025, with approximately $600 million per year needed in 2026 and 2027, and flexibility in accessing equity markets [41][42] Question: How would a lower ramp from Panasonic impact load growth? - Management stated that the current forecast includes only 2% to 3% load growth, with additional customers potentially increasing this to 4% to 5% [43][44] Question: How does the large load customer pipeline relate to tariff proceedings? - Management noted that while tariff proceedings are important, they are not gating items for customer projects, which are advancing in parallel [76][78] Question: Are the approved solar projects subject to additional federal permitting? - Management believes the approved solar projects will qualify under current rules, but will remain flexible to adapt to any new federal guidelines [85][87]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $0.82 per share for Q2 2025, exceeding internal budget and overcoming approximately $0.09 of unfavorable weather impacts [6][28] - Year-over-year adjusted earnings decreased from $0.90 per share in Q2 2024 to $0.82 per share in Q2 2025, primarily due to a 26% decrease in cooling degree days [28][29] - The company reaffirmed its full-year adjusted EPS guidance of $3.92 to $4.12 per share, with expectations to achieve the midpoint [6][33] Business Line Data and Key Metrics Changes - The company experienced a 1.4% increase in weather-normalized demand in Q2 2025, driven by growth in residential and commercial usage [31] - The exit from the Evergy Ventures business resulted in losses of approximately $0.08 million in Q2 2025, which are excluded from adjusted earnings [30] Market Data and Key Metrics Changes - The company anticipates a peak demand of 1.1 gigawatts with 500 megawatts online by 2029, supporting an estimated demand growth forecast of 2% to 3% through 2029 [15][32] - The economic development pipeline includes a robust backlog of over 15 gigawatts, with significant interest from large customers in Kansas and Missouri [12][13] Company Strategy and Development Direction - The company is committed to a long-term growth target of 4% to 6% through 2029, focusing on affordability, reliability, and sustainability [8][33] - The company aims to invest in grid modernization and new generation resources to support higher capacity margin requirements and accommodate load growth from potential large customers [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a balanced approach to meet customer demand and generation needs, emphasizing the importance of flexibility in operations [68] - The company highlighted the supportive regulatory environment in Kansas and Missouri as a key factor in attracting new customers and investments [20][24] Other Important Information - The company achieved several regulatory milestones, including approvals for new natural gas plants and solar farms in both Kansas and Missouri [7][19] - The Kansas Central rate case settlement, if approved, would provide a net revenue increase of $128 million and establish a mechanism for sharing excess earnings with customers [9][10] Q&A Session Summary Question: Can you expand on the timing to derisk equity needs beyond 2025? - Management indicated no planned equity raise in 2025, with approximately $600 million needed in 2026 and 2027, and flexibility in accessing equity markets [41][42] Question: How would a lower ramp from Panasonic impact load growth? - Management stated that the current forecast includes only 2% to 3% load growth, with additional customers potentially increasing this to 4% to 5% [44] Question: What factors influence the large load customer pipeline? - Management noted that both customer development timelines and the company's ability to process and serve are critical factors [49][51] Question: Is the 8.5% rate base growth inclusive of new gas plants and solar? - Management confirmed that the 8.5% reflects the rate base growth associated with the $17.5 billion capital plan, including some approved projects [58][62] Question: How does the company view federal permitting for renewable projects? - Management expressed confidence that approved solar projects will qualify under current regulations, while remaining flexible to adapt to evolving federal guidelines [81][83]

Core Viewpoint - Evergy Inc reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, but down from $0.90 per share a year ago, indicating a +7.89% earnings surprise [1][2] Group 1: Earnings Performance - The company surpassed consensus EPS estimates two times over the last four quarters [2] - Evergy's revenues for the quarter ended June 2025 were $1.44 billion, missing the Zacks Consensus Estimate by 1.93%, compared to $1.45 billion in the same quarter last year [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Group 2: Stock Performance - Evergy shares have increased approximately 19% since the beginning of the year, outperforming the S&P 500's gain of 7.9% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Group 3: Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.16 on revenues of $1.85 billion, and for the current fiscal year, it is $4.00 on revenues of $5.96 billion [7] - The Zacks Industry Rank for Utility - Electric Power is in the top 36% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Second Quarter 2025 GAAP Earnings Per Share (EPS) was $0.74, while adjusted EPS was $0.82[19] - Second Quarter 2024 adjusted EPS was $0.90[17] - Year-to-date 2025 adjusted EPS was $1.37, compared to $1.44 in 2024[17] - The company reaffirmed its 2025 adjusted EPS guidance of $3.92 - $4.12 and a long-term adjusted EPS target of 4% to 6% off the 2025E midpoint of $4.02 through 2029E[19] Regulatory and Economic Development - A unanimous settlement agreement was filed for the Evergy Kansas Central Rate Review, projecting a $128 million net revenue increase[23] - The settlement utilizes a 9.7% Return on Equity (ROE) for transmission delivery charge filings and an 8.45% pre-tax rate of return for plant-in-service accounting (PISA) for future investments[23] - The economic development pipeline remains robust, representing over 15 gigawatts of incremental demand actively considering the service territories[27] - The company anticipates serving up to 4-6 GWs of new large load customers, with approximately 500 MW of peak demand expected by 2029 from actively building customers and a potential 600 MW from finalizing agreements[27, 28] Generation and Investment - The company is advancing an "all-of-the-above" generation strategy, including natural gas and solar projects, with a total capacity of 2,184 MW[36] - The company plans $17.5 billion in infrastructure investment from 2025E-2029E, implying an annualized rate base growth of approximately 8.5% from 2024E-2029E[56] Retail Sales Trends - Weather-normalized retail demand grew by 1.4% in the second quarter of 2025, with residential and commercial sectors growing by 1.3% and 2.6% respectively, while industrial declined by 0.9%[49]