Sempra: Another Boring Utility So You Can Sleep Well At Night
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Sempra, a utility company, is considered a solid dividend growth stock with a BBB+ credit rating and undervalued shares, making it a buy. Despite a 16.7% revenue decline in Q3, its long-term EPS growth rate remains strong, driven by Texas growth. Sempra's 3% dividend yield is secure, with a low payout ratio and a 14-year growth streak.
February 01, 2025 | 12:15 pm
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POSITIVE IMPACT
Sempra is a solid dividend growth stock with a BBB+ credit rating and undervalued shares, making it a buy. Despite a 16.7% revenue decline in Q3, SRE's long-term EPS growth rate of 6-8% remains strong, driven by Texas growth. SRE's 3% dividend yield is secure, with a low payout ratio and a 14-year growth streak.
Sempra's strong credit rating and undervalued shares make it attractive to investors. The secure dividend yield and consistent growth streak provide stability, while the long-term EPS growth potential offsets the recent revenue decline, suggesting a positive short-term impact on stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100