OGE Energy (US:OGE) ZACKSยท2024-08-13 18:40Core Viewpoint - OGE Energy Corporation's systematic capital investments are expected to enhance safety, reliability, and resiliency, strengthening its infrastructure and performance, making it a solid investment option in the utility sector [1] Growth Projections - The Zacks Consensus Estimate for OGE's 2024 earnings per share is $2.13, reflecting a year-over-year growth of 2.9% - For 2025, the earnings per share estimate is $2.25, indicating a growth of 5.5% - Sales estimates for 2024 and 2025 show year-over-year growth of 29.5% and 3.2%, respectively - Long-term earnings growth is projected at 5% over the next three to five years [2] Dividend Yield - OGE Energy has a current dividend yield of 4.28%, surpassing the industry average of 3.52% - The company targets a dividend payout ratio of 65-70% [3] Debt Position - OGE Energy's debt to capital ratio at the end of Q2 was 54.03%, lower than the industry average of 62.45% - The time-to-interest earned ratio was 2.9, indicating the company's ability to meet interest obligations comfortably [4] Investments - OGE Energy plans to invest $6 billion from 2024 to 2028 to upgrade its infrastructure - For 2024, the company has allocated $1.1 billion for investment - These investments aim to enhance the safety, resiliency, and reliability of its distribution and transmission grid and generation fleet, as well as improve service during extreme weather events [5] Price Performance - OGE shares have increased by 7.9% over the past month, outperforming the industry's growth of 5.3% [6]