Unassuming Evergy Energy: The AI Boost Your Income Portfolio Needs

Core Viewpoint - Evergy Energy is positioned to benefit from the increasing energy demand driven by AI data centers, particularly in the Kansas City region where major tech companies operate [2][3][5] Group 1: Company Overview - Evergy Energy is an electrical utility serving the greater Kansas City area, providing a critical infrastructure for numerous hyperscalers like Alphabet, Meta Platforms, and NVIDIA-backed Lambda [2][3] - The company is not an AI tool itself but serves as a power provider that supports AI operations [2] Group 2: Market Position and Demand - Analysts predict a significant energy demand boom associated with AI data centers, with Evergy Energy well-positioned to capitalize on this trend [3][5] - The company has a project backlog of 15 GW in capacity awaiting budgetary approvals, which are expected soon, enhancing its market outlook [5][6] Group 3: Analyst Sentiment and Stock Performance - Analyst coverage for Evergy Energy has increased, with 10 out of 11 ratings currently at Buy, indicating strong market sentiment [6] - The consensus target price is trending higher, forecasting a potential 10% upside by mid-December, with a high-range suggesting a 25% upside possible by 2026 [6] Group 4: Dividend Appeal - Evergy Energy offers an annualized dividend of $2.78 in 2025, yielding approximately 3.75%, with expectations for annual growth [7] - The company has a history of increasing dividends for 22 consecutive years, positioning it for potential inclusion in the Dividend Aristocrat Index by 2029 [7] - The current payout ratio is sustainable at 70%, aligning distribution growth with earnings growth [7]