This utility provider, with a beta of 0.59, stands out for its regulated operations in electricity generation, transmission, and distribution, along with natural gas services, serving over 2.4 million electric customers and 900,000 gas users across residential, commercial, and industrial sectors. Its diverse energy mix, including coal, nuclear, natural gas, hydroelectric, wind, methane gas, and solar, supports consistent revenue streams. Recent earnings show adjusted EPS of $2.17 in the third quarter of 2025, up from $1.87 the prior year, driven by new rates, warmer weather, and strong sales volumes.
The company’s long-term outlook includes 6% to 8% EPS compound annual growth through 2029, backed by 9.2% rate base growth and a $68 billion 10-year capital plan focused on energy transition. Risks involve potential delays in data center timelines to 2027, disputes over return on equity in rate cases, and new legislation mandating integrated resource planning and reduced incentives, which add execution complexities. Despite these, prudent planning and stakeholder engagement help mitigate issues, ensuring operational resilience.
We have newly added this stock to the Dividend Protection Stocks Portfolio due to its emphasis on dividend safety and low volatility, which align with protecting investor capital. This move supports our focus on stocks that offer reliable income for risk-averse investors, especially those in or near retirement. By including it, we enhance the portfolio’s stability amid market uncertainties.
