Why CenterPoint Energy (CNP) is a Great Dividend Stock Right Now

Company Overview - CenterPoint Energy (CNP) is based in Houston and operates in the Utilities sector, with a year-to-date share price change of 16.96% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.37%, which is lower than the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.56% [3] Dividend Performance - The annualized dividend of CenterPoint Energy is $0.88, reflecting an 8.6% increase from the previous year [4] - Over the last five years, the company has increased its dividend four times on a year-over-year basis, achieving an average annual increase of 8.25% [4] - The current payout ratio stands at 55%, indicating that the company pays out 55% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, CenterPoint Energy anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.75 per share, representing a year-over-year earnings growth rate of 8.02% [5] Investment Considerations - CenterPoint Energy is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7] - The company is positioned favorably compared to high-growth firms or tech start-ups, which typically do not offer dividends [6][7]