CNP - CenterPoint Energy: Poised For Steady Long-Term Growth

2024-06-22 08:00:00 ET

Summary

• CenterPoint Energy shares have risen steadily since reporting solid Q1 earnings, sitting near a 52-week-high.
• CenterPoint Energy's earnings rose 10% in Q1 due to higher rates from its capital investment and ongoing cost control.
• CenterPoint Energy aims for 6-8% annual EPS and dividend growth through 2030, supported by a $44.5 billion 10-year cap-ex plan.
• With investment focused on resilience and Texas's population growth, this is a credible plan for ongoing dividend growth.

Shares of CenterPoint Energy ( CNP ) have been a modest performer over the past year, rising just 7%, and lagging the broader market as elevated interest rates have weighed on utility valuations. However, shares have been rising steadily since reporting solid Q1 earnings and sit near a 52-week high. I last covered CenterPoint in March , rating shares a “buy,” and since that recommendation, CNP has returned 12%, ahead of the market’s 6% rally. I remain bullish...

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