Core Viewpoint - OGE Energy Corp. presents a strong investment opportunity in the Zacks Utility Electric Power industry due to rising earnings estimates, strategic investments, effective debt management, and a solid dividend history [1] OGE's Growth Projections - The Zacks Consensus Estimate for OGE Energy's 2025 earnings per share (EPS) has increased by 0.4% to $2.27 per share over the past 60 days [2] - The Zacks Consensus Estimate for OGE's 2025 revenues is projected at $3.01 billion, reflecting a growth of 0.8% from the 2024 reported figure [2] - The company's long-term earnings growth rate is estimated at 6.1% over the next three to five years [2] Debt Position of OGE - OGE's total debt to capital ratio stands at 54.34%, which is better than the industry's average of 60.82% [3] - The times interest earned (TIE) ratio for OGE at the end of Q4 2024 was 2.9, indicating the company can comfortably meet its interest payment obligations [3] Dividend History of OGE - OGE Energy has consistently increased shareholder value through dividends, currently paying a quarterly dividend of 42.125 cents per share, leading to an annualized dividend of $1.685 [4] - The current dividend yield for OGE is 3.8%, significantly higher than the Zacks S&P 500 Composite's average of 1.27% [4] OGE's Systematic Investments - OGE Energy plans to invest $6.25 billion in infrastructure from 2025 to 2029 to enhance the safety, resiliency, and reliability of its distribution and transmission grids, as well as its generation fleet [5] OGE Stock Price Performance - Over the past three months, OGE shares have increased by 7.4%, outperforming the industry's growth of 2.8% [6]

Economic Overview - The University of Michigan's Consumer Sentiment Index for mid-March dropped to 57.9, significantly below the consensus estimate of 63.2 and the final reading of 64.7 in February, indicating a decline in consumer confidence [4] - The short-term inflation outlook increased to 4.9% in March from 4.3% in February, the highest since November 2022, while the long-term inflation outlook rose to 3.9% from 3.4%, marking the highest since February 1991 [5] Investment Strategy - Investment in low-beta high-yielding stocks is recommended as a strategy to safeguard portfolios during uncertain market conditions, with the potential for upside if markets recover [6][8] - The utility sector is highlighted for its stability and consistent demand, making it a favorable choice for income-oriented investors [7][8] Company Highlights Ameren Corp. (AEE) - Ameren plans to invest up to $26.3 billion from 2025 to 2029 to enhance customer reliability and transition to cleaner energy sources [11][12] - Expected revenue and earnings growth rates for the current year are 6% and 6.7%, respectively, with a current dividend yield of 2.90% [14] Atmos Energy Corp. (ATO) - Atmos Energy benefits from rising demand for natural gas and has a long-term investment plan to improve pipeline reliability [15] - Expected revenue and earnings growth rates for the current year are 18.2% and 5.1%, respectively, with a current dividend yield of 2.37% [17] American Water Works Co. Inc. (AWK) - American Water Works is expanding through acquisitions and new water rates, with pending acquisitions expected to add 24,200 customers [21] - Expected revenue and earnings growth rates for the current year are 1.1% and 5.9%, respectively, with a current dividend yield of 2.15% [22] Entergy Corp. (ETR) - Entergy plans to invest $37 billion from 2025 to 2028 to modernize its infrastructure and expand renewable capacity [23] - Expected revenue and earnings growth rates for the current year are 5.5% and 6.3%, respectively, with a current dividend yield of 2.90% [25] NiSource Inc. (NI) - NiSource expects to invest $19.4 billion from 2025 to 2029 to modernize infrastructure and aims to retire all coal-generating sources by 2028 [26][27] - Expected revenue and earnings growth rates for the current year are 11.1% and 9.1%, respectively, with a current dividend yield of 2.90% [28]

Core Viewpoint - AES Corporation is focused on increasing its renewable energy generation through solar, wind, and battery energy storage, while also expanding its presence in the liquefied natural gas (LNG) market [1] Group 1: Renewable Energy Expansion - AES has been expanding its renewable generation portfolio to capitalize on the growing clean energy market, completing the construction of 3 gigawatts (GW) of wind, solar, gas, and energy storage in 2024, with an expectation to add a total of 3.2 GW to its operating portfolio by the end of 2025 [2] - The company is rapidly retiring coal-fired units to promote clean energy adoption, having retired 481 megawatts (MW) of coal generation in Chile and the United States in 2024 [3] Group 2: LNG Market Presence - AES operates two LNG terminals in the Caribbean and has long-term contracts to sell re-gasified LNG to industrial users and third-party power plants, capturing demand from industrial and commercial customers [3] Group 3: Financial Performance Challenges - The company faces challenges due to a significant decline in wholesale electricity costs driven by increased renewable energy use, low-cost natural gas, and demand-side management, which may negatively impact AES's financial performance [4] - As of December 31, 2024, AES had a long-term debt of $25.43 billion and a current debt of $3.59 billion, with cash equivalents of $2.04 billion, indicating a substantial debt burden [5] Group 4: Stock Performance - In the past month, AES shares have risen by 10%, outperforming the industry's growth of 0.2% [6]