Market Overview - U.S. stock markets experienced a successful June, with the Dow, S&P 500, and Nasdaq Composite increasing by 4%, 5.7%, and 5.7% respectively, closing at record-high levels for the first half of 2025 [1] - Despite this success, the first half of 2025 marked the weakest performance for the indexes since 2022, with potential catalysts for the second half including a U.S.-China trade deal, anticipated interest rate cuts by the Fed, and reduced recession fears [2] Imaginary Portfolio - An imaginary diversified portfolio was created, consisting of five stocks that each gained over 50% in the first half of 2025, with further upside potential indicated by favorable Zacks Ranks [3][4] Company Highlights Jabil Inc. (JBL) - Jabil is benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, and digital commerce, with a focus on product diversification [7] - Expected revenue and earnings growth rates for Jabil are 5.9% and 18.5% respectively for the next year, with a 9% improvement in the Zacks Consensus Estimate for next-year earnings over the last 30 days [9] Howmet Aerospace Inc. (HWM) - Howmet Aerospace is experiencing growth in the commercial aerospace market, supported by robust build rates and recovery in wide-body aircraft, along with strength in its defense aerospace business [10] - Expected revenue and earnings growth rates for Howmet are 8.5% and 29% respectively for the current year, with a 0.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [11] CVS Health Corp. (CVS) - CVS Health is investing in technology to reduce costs and enhance customer experience, with improved Medicare Advantage star ratings aiding its position [12] - Expected revenue and earnings growth rates for CVS are 3.5% and 12.6% respectively for the current year, with a 2.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [14] Carvana Co. (CVNA) - Carvana's acquisition of ADESA's U.S. operations has strengthened its logistics and auction capabilities, with expectations for year-over-year growth in retail unit sales [15][16] - Expected revenue and earnings growth rates for Carvana are 32.1% and over 100% respectively for the current year, with a 7.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [17] NRG Energy Inc. (NRG) - NRG Energy operates in the energy and home services sector, producing electricity from various sources and expanding operations through both organic and inorganic initiatives [18][19] - Expected revenue and earnings growth rates for NRG are 2.6% and 17% respectively for the current year, with a 2.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [20]

Financial Performance & Growth - Black Hills Corp achieved a solid financial position with a long-term EPS growth target of 4% to 6% off the 2023 base of $3.75 per share[9] - The company targets a 55%-65% dividend payout ratio and has increased its annual dividend for 55 consecutive years[9] - The company is delivering on 2025 earnings guidance, which represents ~5% year-over-year growth, achieving 4%-6% CAGR off 2023 base[11] Capital Investment & Infrastructure - Black Hills Corp has a five-year capital forecast of $4.7 billion for 2025-2029, a 10% increase from the prior five-year plan[11] - The company's capital investment plan includes $2.4 billion for electric utilities and $2.1 billion for gas utilities[93] - The company is undertaking the Ready Wyoming Electric Transmission Initiative, a 260-mile expansion project costing $350 million[33] Data Center & Customer Growth - Black Hills Corp announced 1 GW of data center demand from existing customers, with ~500 MW in the current plan requiring minimal capital[11] - The company expects data center EPS contribution to more than double to 10%+ by 2028[17] - The company's customer count growth is more than double the population growth, with a customer count CAGR of 1.1% from 2019-2024[20, 23] Regulatory & Sustainability - The company is actively executing three to four rate reviews per year, including a filed rate review for Kansas Gas requesting recovery of $17.2 million[11, 18] - Black Hills Corp is committed to reducing GHG emissions intensity 40% by 2030 and 70% by 2040 for electric utilities (2005 baseline)[110] - The company targets Net Zero GHG emissions by 2035 for the natural gas distribution system[110]

Core Viewpoint - Duke Energy Carolinas has requested a public review of its current rates from South Carolina regulators, seeking an overall annual revenue increase of $150.5 million, which equates to a 7.7% increase over current revenues [2]. Financial Impact - If the request is approved, typical residential customers using 1,000 kilowatt-hours per month will see their monthly electric bills rise by $10.38, from $136.82 to $147.19, effective March 1, 2026 [2]. - Commercial customers will experience an average increase of 5.4%, while industrial customers will see an average increase of around 5.2% [2]. Company Commitment - Duke Energy emphasizes its commitment to meeting customers' expectations regarding reliability, responsiveness, affordability, and value, while also supporting South Carolina's economic growth [2][4]. Infrastructure Investments - The company has made significant investments in grid improvements, which have enhanced storm response capabilities and reduced outages for customers [3][7]. - Recent upgrades include smart, self-healing technology that automatically restored over 35,000 customer outages and saved more than 153,000 hours of total outage time during Hurricane Helene [7]. Company Overview - Duke Energy Carolinas, a subsidiary of Duke Energy, operates with 20,800 megawatts of energy capacity, serving 2.9 million customers across a 24,000-square-mile area in North and South Carolina [5]. - Duke Energy, a Fortune 150 company, serves 8.6 million customers across multiple states and is focused on an ambitious energy transition, investing in electric grid upgrades and cleaner generation sources [6][8].

Core Viewpoint - Vistra's stock has seen significant growth over the past year, but recent warnings about the challenges of a nuclear power renaissance in the U.S. may impact future performance [1][4]. Group 1: Stock Performance - Vistra's shares have increased by over 120% in the past year, driven by expectations of rising demand for nuclear power due to AI's energy needs and support from President Trump [3]. - However, shares fell by 4.1% following concerns about the feasibility of the nuclear renaissance plan [1]. Group 2: Nuclear Renaissance Challenges - The target set by President Trump for the Nuclear Regulatory Commission to approve reactor design applications within 18 months is considered aggressive and potentially unrealistic, as typical approval times can extend to five years [4]. - The Journal suggests that any growth in nuclear power supply may come from extending licenses of existing reactors or restarting closed reactors, rather than new constructions [4]. Group 3: Financial Outlook - Analysts project strong earnings growth for Vistra, forecasting over 20% annual growth, which could justify the stock's current valuation of 27.5 times earnings [5]. - Vistra's stock appears approximately 20% cheaper when assessed on free cash flow (FCF) compared to GAAP earnings, with a valuation of 23 times FCF and a modest dividend yield of 0.5% [6].

Company Overview - American Electric Power Company, Inc. is a public utility holding company that generates, transmits, and distributes electricity and natural gas, serving nearly 5.6 million customers across 11 states [12]. - The company has a generating capacity of approximately 23,200 megawatts (MW), with nearly 46% of its capacity being coal-fired as of December 31, 2024 [12]. - The energy generation mix includes approximately 40% from coal and lignite, 22% from nuclear energy, 22% from natural gas and oil, and 16% from renewable sources [12]. Investment Ratings - American Electric Power is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B [12]. - The company has a Momentum Style Score of B, indicating positive momentum in its stock performance, with shares up 0.6% over the past four weeks [13]. Earnings Estimates - One analyst has revised their earnings estimate higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $5.86 per share [13]. - The company boasts an average earnings surprise of 4.1%, suggesting a history of exceeding earnings expectations [13].

Financial Performance - 2017 - Earnings from continuing operations increased from $232.4 million in 2016 to $284.2 million in 2017[10], which includes a $39.5 million benefit from tax reform[11] - Consolidated earnings increased from $63.7 million in 2016 to $280.4 million in 2017[13], including a $39.5 million benefit from tax reform[14] - Construction Services reported earnings of $53.3 million in 2017[22], including a $4.3 million income tax benefit[23], and record revenues of $1.37 billion[23] - Construction Materials reported earnings of $123.4 million in 2017[25], including a $41.9 million income tax benefit[26] Segment Performance - 2017 - Electric & Natural Gas Utility reported earnings of $81.6 million[17], including a $6.4 million charge from tax reform[17], with increased retail sales volumes for both electric (2%)[17] and natural gas (13%)[17] - Pipeline & Midstream reported earnings of $20.5 million[20], including a $200,000 charge from tax reform[20], reflecting the sale of Pronghorn assets in January 2017[20] Outlook and Guidance - 2018 EPS guidance is projected to be in the range of $1.25 to $1.45[43] - Construction Services anticipates 2018 revenues between $1.45 billion and $1.60 billion[39] - Construction Materials anticipates 2018 revenues between $1.8 billion and $1.9 billion[42] Capital Program and Dividends - The company's total capital forecast for 2018-2022 is $2.323 billion[46], allocated to Utility ($1.508 billion), Construction ($466 million), and Pipeline & Midstream ($349 million)[46] - The company has increased its dividend for 27 consecutive years[50] and has made dividend payments for 80 consecutive years[49, 50]

Group 1 - OGE Energy Corp. will hold its quarterly earnings and business update conference call on July 30, 2025, at 9 a.m. Eastern Time [1] - The conference call will be accessible via webcast on OGE Energy's official website [1] - OGE Energy Corp. is the parent company of OG&E, which serves approximately 909,000 customers in Oklahoma and western Arkansas [1]

Core Insights - NRG Energy is leveraging the growing demand for electricity from data centers by securing new power supply agreements and investing in infrastructure to meet this demand [1][5] - The U.S. data center market is projected to grow significantly, reaching a size of $308.83 billion by 2030, with a compound annual growth rate (CAGR) of 6.78% [1] Partnerships and Agreements - NRG Energy is forming partnerships with major technology companies and data center operators to ensure a reliable energy supply tailored to the industry's needs [2] - The company has signed Letters of Intent and project development agreements with developers like PowLan and Menlo Equities, targeting an initial supply of 400 megawatts (MW), scalable to 6.5 gigawatts (GW) by 2026 [3][9] Infrastructure Investments - NRG Energy has dedicated teams for engineering, construction, and offtake structuring to implement its data center strategy [4] - The company has increased its order for gas turbines from GE Vernova Inc. from 1.2 GW to 2.4 GW to support the energy needs of the data center and AI industries [4][9] Market Performance - NRG Energy's stock has increased by 4.3% over the past month, outperforming the industry, which saw a decline of 0.2% [8] - The company is trading at a premium with a forward 12-month price-to-earnings ratio of 18.92X compared to the industry average of 14.59X [11] Earnings Estimates - The Zacks Consensus Estimate indicates an increase in NRG Energy's earnings per share (EPS) of 17.02% for 2025 and 21.69% for 2026 [12] - Current estimates for EPS are 1.07 for the current quarter and 2.56 for the next quarter, with a projected growth of 38.38% for the next quarter [13]

Core Viewpoint - Dividend-paying stocks are generally considered lower-risk investments compared to non-payers, as they generate sufficient cash to fund growth and return excess to shareholders through dividends [1] Group 1: Black Hills (BKH) - Black Hills operates as a regulated utility with a monopoly on natural gas distribution and electricity in several states, benefiting from government regulation [5][6] - The company has a growing customer base, expanding at twice the rate of the U.S. population, and has a history of increasing dividends for over five decades, achieving Dividend King status [7] - Expected earnings growth of 4% to 6% and a dividend yield of 4.8% make Black Hills an attractive investment opportunity [8] Group 2: Kinder Morgan (KMI) - Kinder Morgan is one of the largest energy infrastructure platforms in the U.S., with stable cash flows supported by take-or-pay contracts that account for 64% of annual cash flows [9][10] - The company anticipates cash flow growth to $5.9 billion this year, sufficient to cover its $2.6 billion dividend outlay and fund capital expenditures with excess free cash flow [11][12] - With $8.8 billion in growth capital projects, primarily in natural gas pipelines, Kinder Morgan has a strong foundation for future dividend increases, having raised its payout for eight consecutive years [13] Group 3: American States Water (AWR) - American States Water is a major water utility serving 1 million consumers across nine states, with a long history of dividend payments since 1931 and 70 consecutive years of increases, making it a top Dividend King [15] - The company has achieved a compound annual growth rate (CAGR) of 8.8% in dividend growth over the past five years and aims for over 7% in the long term, supported by planned capital expenditures [16] - The stable cash flows and growth potential position American States Water as one of the safest and most reliable dividend stocks available, with a current yield of 2.4% [17]

Core Viewpoint - Dividend growth stocks are highlighted as valuable investment opportunities due to their potential for passive income and wealth accumulation through reinvestment and compounding [1][2]. Group 1: Dividend Stocks Overview - The focus is on prioritizing dividend stability and growth over high yield, identifying 10 dividend stocks that offer both growth and attractive yields [2]. - The article emphasizes the importance of investing in high-quality dividend growth stocks for long-term returns [1]. Group 2: Individual Stock Highlights - **Realty Income**: Offers a yield of 5.6%, has paid dividends since 1994, and increased its dividend 130 times, currently trading 30% below all-time highs [4][5]. - **NextEra Energy**: Yield of 3.2%, the largest electric utility in the U.S., has increased dividends for over 20 years, with a projected annual growth of 6% to 8% in earnings and 10% in dividends through at least 2026 [6][7]. - **Enterprise Products Partners**: Yield of 6.9%, has raised dividends for 26 consecutive years, with $6 billion in projects expected to boost cash flows [8][10]. - **Brookfield Infrastructure**: Yield of 4.2%, has increased dividends since 2009 at a CAGR of 14%, with expected long-term dividend growth of 5% to 9% [11][12]. - **American Water Works**: Yield of 2.4%, plans to invest $40 billion to $42 billion in infrastructure over the next decade, expecting EPS growth of 7% to 9% [13][15]. - **Waste Management**: Yield of 1.5%, has increased dividends for 22 consecutive years, with a recent acquisition expected to generate $250 million in annual cost synergies [16][18]. - **Brookfield Renewable**: Yield of 4.6%, targeting FFO growth of over 10% and annual dividend growth of 5% to 9% [19][20]. - **Caterpillar**: Yield of 1.6%, has a strong dividend history with a recent 7% hike, committed to returning a significant portion of FCF to shareholders [22][24]. - **Emerson Electric**: Yield of 1.6%, a Dividend King with a 69-year streak of dividend increases, reflecting operational efficiency and growth in automation [25][26]. - **Parker-Hannifin**: Yield of 1%, has increased dividends for 69 consecutive years, with significant growth opportunities in a $145 billion market [27][30].