XEL - Xcel Energy: Time To Buy This Dependable Dividend Stock

2024-02-01 08:15:00 ET

Summary

• Since my last buy recommendation in December, shares of Xcel Energy have underperformed the S&P.
• The electric and gas utility missed the analyst consensus for operating revenue in Q4 but met the consensus for non-GAAP EPS.
• Xcel Energy's interest coverage ratio was 2.5, which is decent for a regulated utility.
• Shares of the electric and gas utility could be 17% undervalued.
• Xcel Energy could be positioned to slightly beat the S&P 500 over the next 10 years.

The predictable streams of income that a quality dividend portfolio can generate over time shouldn't be underestimated. When a portfolio becomes large enough, this can fund an investor's living expenses. That also allows an investor to avoid having to sell off their portfolio at unfavorable valuations to pay bills....

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