Here's Why You Should Add PNM Resources (PNM) to Your Portfolio

Core Viewpoint - PNM Resources (PNM) is positioned as a solid investment option in the utility sector due to its acquisitions, infrastructure investments, and cost-effective power generation units [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for PNM's 2024 earnings per share (EPS) has increased by 1.5% to $2.71 over the past 60 days - The 2024 revenue estimate stands at $2.35 billion, reflecting a year-over-year increase of 21.3% - PNM's long-term earnings growth rate is projected at 4.6%, with an average earnings surprise of 2.2% over the last four quarters [2] Return on Equity - PNM Resources has a return on equity (ROE) of 9.91%, surpassing the sector average of 9.68%, indicating more effective fund utilization compared to peers [3] Solvency & Liquidity - The times interest earned (TIE) ratio is 1.3, indicating the company can comfortably meet its interest obligations - As of April 26, 2024, PNM Resources had $644.9 million in liquidity, sufficient for short-term obligations [4] Dividend History - PNM has consistently increased dividends since 1996, with a current quarterly dividend of 38.75 cents per share, leading to an annual dividend of $1.55, up 5.4% from $1.47 - The current dividend yield is 4.03%, significantly higher than the S&P 500 Composite's average of 1.27% [5] Strategic Investment - PNM plans to invest $6.1 billion from 2024 to 2028 to enhance its transmission and distribution infrastructure, supporting an average rate base compound annual growth rate (CAGR) of 10% during this period [6] Price Performance - Over the past three months, PNM Resources shares have increased by 2.7%, outperforming the industry's growth of 2.3% [7]