Strong dividend growth: what does the US energy sector offer?

The US energy sector presents interesting opportunities for investors seeking stable income and growth potential. One of the main attractions is an attractive dividend yield in excess of 4%, which is supported by stable financial fundamentals and a long history of regular payouts. Dividend growth is around 5% per annum, while the sustainability of a payout ratio in the 60-70% range ensures that the company can continue to reward shareholders while investing in future growth.

Investment of $16.2 billion is expected to support earnings per share growth of 4-6% per year through 2029, with analysts forecasting growth of up to 8.4% for 2024. This combined approach to dividends and growth makes energy companies attractive.

Company performance

Evergy $EVRG is a U.S. energy company that was formed in 2018 through the merger of two established companies, Great Plains Energy and Westar Energy. This merger created a major player in the energy market, which now provides electricity to approximately…