Xcel Energy: Buy This Dividend Aristocrat In The Making

Summary

  • Xcel Energy is on its way to joining an elite group of dividend-growth stocks.
  • The regulated utility topped analyst expectations for operating revenue and ongoing diluted EPS in Q2.
  • XEL is arguably set up to deliver on the high end of its annual targeted ongoing diluted EPS growth range.
  • Shares are trading 10% below our fair value estimate.
  • If XEL grows as anticipated and returns to our fair value, it could have a 14% upside through June 2026 and 11% annual total return potential by the end of 2030.
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