XEL - Xcel Energy: Buy This Quality Dividend Grower On Sale
2024-05-22 07:44:59 ET
Summary
- Xcel Energy has hiked its dividend for 21 consecutive years, which puts it on track to become a Dividend Aristocrat.
- The electric and gas utility's operating revenue fell as ongoing diluted EPS climbed higher in Q1.
- XEL's interest coverage ratio is holding steady.
- The electric and gas utility could conservatively be priced at least 15% below fair value.
- XEL may have the potential to deliver 15% annual total returns through 2026.
Not all dividend stocks are created equal. Some don't have an established track record of dividend growth. Others do. The businesses of some are trending in unfavorable directions. Fundamentally, others are on a more favorable path.
Today, I'm going to revisit one of the electric and gas utilities in my coverage universe, Xcel Energy ( XEL ). When I last covered XEL with a buy rating in February , I appreciated the electric and gas utility for its solid earnings growth potential, 20-year dividend growth streak/well-covered dividend, and undervaluation....
Xcel Energy: Buy This Quality Dividend Grower On Sale