Entergy (ETR) Could Be a Great Choice

Company Overview - Entergy (ETR) is based in New Orleans and operates in the Utilities sector, with a year-to-date share price change of 27.38% [3] - The company currently pays a dividend of $0.60 per share, resulting in a dividend yield of 2.48%, which is lower than the Utility - Electric Power industry's yield of 3.02% and the S&P 500's yield of 1.49% [3] Dividend Performance - Entergy's current annualized dividend of $2.40 has increased by 4.6% from the previous year [4] - Over the past five years, Entergy has raised its dividend five times, achieving an average annual increase of 5.80% [4] - The company's current payout ratio is 60%, indicating that it distributes 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Investment Appeal - For the fiscal year, Entergy anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $3.90 per share, reflecting a year-over-year growth rate of 6.85% [5] - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5] - Entergy is recognized as an attractive dividend investment and holds a Zacks Rank of 2 (Buy), indicating a compelling investment opportunity [6]