Dividend Increase: Xcel Energy (XEL)

Last week Xcel Energy (XEL) announced their 2017 dividend increase of $0.02 per share.  This brings the quarterly dividend to $0.36 from last years $0.34 per share. Good for a 5.88% increase.  XEL is a boring energy company operating throughout the Midwest and West in a total of 8 states.  This increase marks 14 years straight of dividend increases.  The current dividend yield is 3.32% based on Fridays close of 43.34.  Something I like about XEL is their investor relations site.  It’s clear on their objectives.  Pulled straight from the XEL Investor relations site:

Financial Objectives
• Long-term EPS growth of 4-6%
• Annual dividend increases of 5-7%
• Dividend payout ratio target of 60-70%
• Maintain senior unsecured debt credit ratings in the BBB+ to A range
• Maintain senior secured debt credit ratings in the A range

XEL Dividend History:

As you can see, from 2003-2017, XEL has grown its dividend an average of 4.47%.  Recent years have been a little more generous with increases.  That growth rates has resulted in dividend income almost doubling during the 15 year time frame or an overall increase of 89%.

XEL vs S&P500

Being an energy company, you really aren’t expecting groundbreaking growth.  However, looing at the last decade, we see that XEL has still managed to slightly outperform the S&P500.  Add to that a better yield, and you have a nice boring holding that gives modest growth and decent growing income.

XEL Key Stats:

Market Cap: $22 Billion

Dividend Yield: 3.32%

Payout Ratio: 61.75%

PE ratio:19.61

Beta: 0.07

Profit Margin: 10.11%

Total Cash: $359 Million

Total Debt: $14.48 Billion

Beta is freakishly low.  Debt concerns me.  Profit Margin remains within managements goal of 60-70%, and at the current level allows room for future dividend increases.

Conclusion:

XEL is a perfect retiree stock holding.  Decent stock appreciation and a decent yield that has room to grow.  I would however hold off on purchasing at the current price and look for an entry price at $41.

Follow me on the social medias:

Readers Comments (11)

  1. buy cialis online http://generictadalafil20.com generic tadalafil

  2. cialis prices the effects of cialis on women
    cialis prices 20mg

  3. If you want to increase your knowledge just keep visiting
    this web site and be updated with the latest gossip posted here.
    asmr 0mniartist

  4. Undeniably believe that which you said. Your favorite justification appeared to be on the internet the simplest thing to be aware of.
    I say to you, I definitely get annoyed while people think about worries that they plainly don’t know about.
    You managed to hit the nail upon the top and also defined out
    the whole thing without having side effect , people could take a signal.
    Will probably be back to get more. Thanks

  5. Good answer back in return of this issue with solid arguments and telling everything concerning that.

  6. Accustomed Low-down Here this outcome
    https://canadianexpresspharm.com online pharmacies

  7. Somebody necessarily help to make significantly posts I’d state.
    This is the very first time I frequented your website page and so far?
    I amazed with the analysis you made to create this particular submit amazing.
    Magnificent process!

Leave a comment

Your email address will not be published.


*


Follow me on the social medias: