Entering text into the input field will update the search result below

CenterPoint Energy: Why This Utility Is A Good Buy

Apr. 07, 2021 11:44 PM ETCenterPoint Energy, Inc. (CNP)8 Comments


  • CenterPoint Energy is transforming itself into a pure-play utility, and could see meaningful growth over the next several years.
  • It remains relatively undervalued, and shareholders could reasonably see a 17% total return over the next 12-18 months.
  • I also highlight the valuation, dividend, balance sheet, and risks worth considering.

United States Of America At Night - Planet Earth Seen From Space
Photo by DKosig/iStock via Getty Images

Utilities deserve a place in most defensive portfolios for the steady growth and income that they can provide. While this sector has gotten expensive in recent months, I still see pockets of value here and there. Such

This article was written by

Gen Alpha profile picture

I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group Hoya Capital Income Builder. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (8)

Sold them after they cut their dividend.
one of my worst buys @ $30+. They are my gas utility and they have a solid reputation as a well run utility. That does not make them a good investment. I can't wait to send them on their way.
SleepyInSeattle profile picture
@GreenguyMN I feel your pain as I am in the same boat. I too can't wait to send them on their way.
M* always has very high price targets. In this case, I hope they are right [probably not] so I can get out "even steven."
birder 4000 profile picture
I have a modest amount of CNP with a very modest gain. It is not one of my favorite stocks. I am glad they are selling their share of the pipeline company. That should improve the outlook for CNP hopefully.
Steady Income profile picture
I'm waiting for CNP to reach $25.80 so I can dump it and break even. I typically don't own companies that cut dividends. I'll stick with ED and smaller amounts of WEC, UGI and MDU.
Old Professor profile picture
@Steady Income I hear that.
@Steady Income - I agree. CNP has been a pig in my portfolio. I want to unload this too when the time is right.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.