2024-07-10 09:59:56 ET
Summary
- DT Midstream offers a compelling investment case with a mix of utility-like stability and midstream growth potential.
- Despite a lower yield than peers, DTM's growth projects, including pipeline expansions and carbon capture initiatives, promise significant future earnings.
- With a strong dividend coverage and healthy free cash flow outlook, DTM is well-positioned for sustained growth.
Introduction
Initially, I wanted to write an article on (electric) utilities. As most readers will know, utilities are getting a massive tailwind from the AI revolution, which is expected to cause unprecedented growth in total power demand, a tailwind the struggling utility sector will gladly accept in light of elevated funding costs and limited pricing power.
According to Goldman Sachs , power demand in the United States is expected to grow by 2.4% per year in the 2022-2030 period. A major share (0.9%) of this is expected to come from data centers!
While the U.S. is home to many great utilities, I decided to do things a bit differently....
Read the full article on Seeking Alpha
For further details see:
DT Midstream: The 4% Yielding Dividend Grower You Probably Didn't Know