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Why CenterPoint Energy (CNP) is a Great Dividend Stock Right Now
ZACKSยท 2025-05-30 16:51
Company Overview - CenterPoint Energy (CNP) is based in Houston and operates in the Utilities sector, with a year-to-date share price change of 16.96% [3] - The company currently pays a dividend of $0.22 per share, resulting in a dividend yield of 2.37%, which is lower than the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.56% [3] Dividend Performance - The annualized dividend of CenterPoint Energy is $0.88, reflecting an 8.6% increase from the previous year [4] - Over the last five years, the company has increased its dividend four times on a year-over-year basis, achieving an average annual increase of 8.25% [4] - The current payout ratio stands at 55%, indicating that the company pays out 55% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, CenterPoint Energy anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.75 per share, representing a year-over-year earnings growth rate of 8.02% [5] Investment Considerations - CenterPoint Energy is viewed as a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7] - The company is positioned favorably compared to high-growth firms or tech start-ups, which typically do not offer dividends [6][7]
PPL vs. AEE: Which Utility Stock Offers More Growth Potential?
ZACKSยท 2025-05-30 16:46
Industry Overview - The Zacks Utility - Electric Power industry is characterized by a regulated framework that allows utilities to recover costs and generate consistent returns, minimizing earnings volatility [1] - The sector is seen as a dependable choice for income-oriented investors due to steady electricity demand and attractive dividend yields [1] Transition to Clean Energy - Electric utilities in the U.S. are evolving beyond traditional income providers, driven by investments in grid modernization, renewable energy integration, and electrification [2] - Federal incentives and climate initiatives are reshaping the utilities industry, positioning companies at the forefront of this transition for sustained growth [2] Company Profiles PPL Corporation - PPL Corporation focuses on infrastructure upgrades and clean energy, benefiting from predictable revenues due to its regulated nature [3] - The company is well-positioned for steady earnings growth and long-term value through investments in grid reliability and sustainable energy [3] Ameren Corporation - Ameren Corporation serves Missouri and Illinois, offering stable cash flows and a reliable dividend yield, supported by a constructive regulatory environment [4] - The company emphasizes grid modernization and clean energy transition, backed by strong financial management and credit ratings [4] Earnings Growth Projections - PPL's earnings per share (EPS) is projected to grow by 7.69% in 2025 and 8.24% in 2026, with a long-term growth estimate of 7.46% [6] - Ameren's EPS is expected to grow by 6.48% in 2025 and 7.61% in 2026, with a long-term growth estimate of 6.95% [9] Financial Metrics - PPL's return on equity (ROE) is 9.14%, while Ameren's ROE is 10.40%, which is above the industry's average of 10.13% [12] - PPL's debt-to-capital ratio is 52.71%, lower than Ameren's 59.78% and the industry's 54.57% [14] Dividend Yield - PPL Corporation has a dividend yield of 3.19%, higher than Ameren's 2.98% and the industry's yield of 3.17% [16] Valuation - PPL appears cheaper than Ameren on a Price/Earnings Forward 12-month basis, trading at 18.19X compared to Ameren's 18.75X [17] Capital Expenditure Plans - PPL plans to invest nearly $20 billion from 2025 to 2028 for infrastructure and clean electricity generation [19] - Ameren plans to invest $27.4 billion from 2025 to 2029 for strengthening its electric transmission, distribution, and generation infrastructure [19] Conclusion - PPL offers a balanced mix of income and long-term value appreciation potential, with a cheaper valuation and lower debt level compared to Ameren [20]
NextEra Energy vs. Duke Energy: Which Utility Stock Shines Brighter?
ZACKSยท 2025-05-29 14:55
Industry Overview - The Zacks Utility - Electric Power industry is characterized by a regulated structure that supports stable, long-term income, allowing utilities to recover costs and earn consistent returns, which reduces earnings volatility [1] - The industry is evolving due to a shift toward clean energy, with significant investments in grid modernization, renewable integration, and electrification, reshaping the sector [2] Company Profiles NextEra Energy - NextEra Energy is a leading U.S. utility known for its investments in renewable energy, including wind, solar, and battery storage, driving the clean energy transition [3] - The company operates one of the largest portfolios of wind and solar projects globally and has strong financials and a history of innovation [3] - NextEra Energy's earnings per share (EPS) estimate for 2025 has increased by 0.27% over the past 60 days, with a long-term earnings growth projection of 7.72% [6] Duke Energy - Duke Energy is one of the largest U.S. utilities, aiming to cut carbon emissions by 50% by 2030 and achieve net-zero emissions by 2050, with plans to double renewable capacity by 2030 [4] - The company is investing in modern infrastructure and clean technologies, offering stable, regulated returns with long-term growth potential [4] - Duke Energy's EPS estimates for 2025 remained unchanged, while the 2026 estimates decreased by 0.15%, with a long-term earnings growth projection of 6.33% [8] Financial Metrics - NextEra Energy's current dividend yield is 3.33%, while Duke Energy's is 3.59%, both exceeding the industry average of 3.17% [11] - Return on Equity (ROE) for NextEra Energy is 12.06%, outperforming Duke Energy's ROE of 9.88% and the industry's ROE of 10.13% [12] - NextEra Energy's debt-to-capital ratio is 56.98%, compared to Duke Energy's 60.61%, with the industry's average at 54.57% [14] Valuation and Capital Expenditure - NextEra Energy is trading at a Price/Earnings Forward 12-month ratio of 17.93X, slightly cheaper than Duke Energy's 17.96X, while both are above the industry average of 15.37X [15] - NextEra Energy plans to invest nearly $72.6 billion from 2025 to 2029, while Duke Energy plans to invest $46.6 billion from 2025 to 2027, focusing on infrastructure and clean electricity generation [17] Conclusion - NextEra Energy has a marginal edge over Duke Energy due to its positive earnings estimate movement, better ROE, and cheaper valuation, despite both companies holding a Zacks Rank 3 (Hold) [18]
Middlesex Water (MSEX) Could Be a Great Choice
ZACKSยท 2025-05-28 16:50
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a met ...
Are Utilities Stocks Lagging DTE Energy (DTE) This Year?
ZACKSยท 2025-05-28 14:46
Company Overview - DTE Energy is one of 106 companies in the Utilities group, which currently ranks 2 within the Zacks Sector Rank [2] - DTE Energy has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Performance Metrics - DTE Energy has returned approximately 13.6% year-to-date, outperforming the average return of 8.1% for Utilities companies [4] - The Zacks Consensus Estimate for DTE's full-year earnings has increased by 0.6% over the past three months, reflecting improved analyst sentiment [3] Industry Context - DTE Energy is part of the Utility - Electric Power industry, which includes 60 stocks and currently ranks 72 in the Zacks Industry Rank [6] - The average return for the Utility - Electric Power industry so far this year is 8.1%, indicating that DTE is performing better than its industry peers [6] Competitive Landscape - National Grid (NGG) is another Utilities stock that has outperformed the sector with a year-to-date return of 25.7% [4] - National Grid also holds a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 2.9% over the past three months [5]
Are Utilities Stocks Lagging Fortis (FTS) This Year?
ZACKSยท 2025-05-27 14:45
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Fortis (FTS) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.Fortis is a member of the Utilities sector. This group includes 106 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank includes 16 different groups a ...
Are Utilities Stocks Lagging Artesian Resources (ARTNA) This Year?
ZACKSยท 2025-05-23 14:45
Group 1 - Artesian Resources (ARTNA) is one of 106 individual stocks in the Utilities sector, ranking 2 in the Zacks Sector Rank [2] - The Zacks Rank system, which emphasizes earnings estimates and revisions, currently gives Artesian Resources a rank of 1 (Strong Buy) [3] - The Zacks Consensus Estimate for ARTNA's full-year earnings has increased by 8% in the past quarter, indicating improved analyst sentiment [4] Group 2 - Artesian Resources has returned 7.2% year-to-date, outperforming the Utilities sector average return of 6.4% [4] - Artesian Resources belongs to the Utility - Water Supply industry, which has gained an average of 15.8% this year, indicating slight underperformance compared to its industry [6] - Deutsche Telekom AG (DTEGY), another stock in the Utilities sector, has a year-to-date return of 29.6% and a Zacks Rank of 2 (Buy) [5][6]
Why Exelon (EXC) is a Great Dividend Stock Right Now
ZACKSยท 2025-05-21 16:51
Group 1 - The primary focus of income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] - Dividends are a significant component of long-term returns, often contributing over one-third of total returns [2] - Exelon (EXC), a utility company based in Chicago, has experienced a stock price increase of 17.59% year-to-date and currently pays a dividend of $0.8 per share, yielding 3.62% [3] Group 2 - Exelon's annualized dividend of $1.60 represents a 5.3% increase from the previous year, with an average annual increase of 0.01% over the last five years [4] - The company's current payout ratio is 58%, indicating that it pays out 58% of its trailing 12-month earnings per share as dividends [4] - The Zacks Consensus Estimate projects Exelon's earnings to grow to $2.70 per share in 2025, reflecting an 8% increase from the previous year [5] Group 3 - High-yielding stocks may face challenges during periods of rising interest rates, but Exelon is considered a compelling investment opportunity due to its strong dividend profile [7] - Exelon holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [7]
Why DTE Energy (DTE) is a Top Dividend Stock for Your Portfolio
ZACKSยท 2025-05-21 16:51
Company Overview - DTE Energy is headquartered in Detroit and operates in the Utilities sector [3] - The stock has experienced a price change of 14.61% since the beginning of the year [3] Dividend Information - DTE Energy currently pays a dividend of $1.09 per share, resulting in a dividend yield of 3.15% [3] - The company's annualized dividend of $4.36 has increased by 5.1% from the previous year [4] - Over the last five years, DTE Energy has raised its dividend four times, averaging an annual increase of 1.01% [4] - The current payout ratio is 60%, indicating that 60% of its trailing 12-month earnings per share (EPS) is distributed as dividends [4] Earnings Growth - The Zacks Consensus Estimate for DTE Energy's earnings in 2025 is $7.24 per share, reflecting a year-over-year growth rate of 6% [5] Investment Appeal - DTE Energy is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]
Southwest Gas Holdings Announces Launch of Secondary Public Offering of Centuri Holdings, Inc. Common Stock
Prnewswireยท 2025-05-20 20:51
Core Viewpoint - Southwest Gas Holdings, Inc. is initiating a secondary public offering of 9,000,000 shares of Centuri Holdings, Inc. common stock, with an option for underwriters to purchase an additional 1,350,000 shares [1][2] Group 1: Offering Details - The offering includes 9,000,000 existing shares of Centuri's common stock, with a potential additional purchase option for underwriters [1] - Icahn Partners and Icahn Partners Master Fund LP will concurrently purchase $50 million in shares from Southwest Gas Holdings at the offering price [2] - The shares are being offered under an effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be available [3] Group 2: Company Background - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, providing natural gas services to over 2 million customers in Arizona, Nevada, and California [5] - Centuri Holdings, Inc. is a utility infrastructure services company that collaborates with regulated utilities to maintain energy networks across the U.S. and Canada [6]