Eversource Energy is the largest utility company in the New England area, servicing regions like Connecticut, New Hampshire, and Massachusetts. The company has witnessed steady growth. Its earnings per share have grown at an annual average rate of 6% since 2012. The earning per share was $2.28 in 2012, and it rose to $3.64 in 2020. Investors looking to buy now utility stock may want to consider Eversource Energy as one option. In general, utility stocks have been relatively strong over the past few weeks. The sector seems to be benefitting from a shift from growth stocks to value stocks. Investors can take advantage of this trend while also balance their portfolios with a defensive sector like utilities. Besides, the dividend payments also tend to be quite reasonable when it comes to utility stocks.
More On Eversource’s Financial Performance
Dividends are an essential metric to evaluate utility companies. In the case of Eversource, the dividend per share in 2017 was $1.9. It has since grown to $2.41 in 2021. The dividends have increased every single year during this time, while the payout ratio has remained relatively consistent around the 62% mark. Such a ratio is reasonably conservative, and the dividend growth can be expected to continue into the future. Eversource Energy has planned a capital expenditure of $17 billion between the years 2021 and 2025. A large part of this expenditure will go towards electric distribution. Eversource Energy is also working aggressively towards its sustainability initiatives. It plans to go carbon neutral by the year 2030. If you are looking to buy utility stock, then Eversource Energy might fit the financial and ESG criteria.
Eversource Energy’s stock is up 7.8% on a 1-year basis. The stock has been range-bound throughout the past year, with prices varying between $75-$90 band. Over a longer 5-year term, the stock price is up 50%. The dividend yield on offer on 21st May 2021 was over 2.8%.