Latest news with #utilities
The Sun
3 hours ago
- Business
- The Sun
Energy giant with 5million customers in merger talks to create UK's 3rd BIGGEST gas & electricity supplier
TWO major energy suppliers are in talks about a merger. If it goes ahead it would create the UK's third-largest gas and electricity retailer. 3 Scottish Power, owned by Spain's Iberdrola, and Ovo Energy are in talks to create a merger. It would create a company serving more than six million households, Sky News reports. Talks are still in the early stages, and any formal agreement will take months if it goes ahead. With Ovo being the larger company, serving four million customers, they are likely to be the acquiring entity. Iberdrola would potentially contribute cash and remain as a shareholder. If they do merge, it would create the third-largest supplier, behind Centrica-owned British Gas and Octopus Energy. Scottish Power currently serves around 2.4 million households. Alongside the potential merger, Ovo is aiming to raise £300 million from the sale of shares in the company. Last year the company hired Rothschild to explore options around new investors or a sale. Rothschild has reportedly contacted financial investors in recent weeks. Stop Making This Air Conditioning Mistake: How to Slash Your Summer Energy Bill Ovo became one of the UK's leading suppliers in 2020 after it bought the retail supply arm of SSE. Since Justin King became Ovo's chair, the company has prioritised repairing its regulatory relationships. Iberdrola bought Scottish Power in 2007 for over £11 billion. 3
Yahoo
10 hours ago
- Business
- Yahoo
Centuri Holdings (CTRI) Surges Amid New Contract Awards
The share price of Centuri Holdings, Inc. (NYSE:CTRI) surged by 8.24% between June 18 and June 26, 2025, putting it among the Energy Stocks that Gained the Most This Week. A large natural gas pipeline snaking through a rural landscape. Centuri Holdings, Inc. (NYSE:CTRI) is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada. Centuri Holdings, Inc. (NYSE:CTRI) surged this week after the company announced that it had secured more than $575 million in infrastructure contract awards across the United States, reflecting its momentum in capturing opportunities to expand and modernize essential energy infrastructure. A significant portion of the announced awards includes a multi-year contract renewal with a long-standing natural gas utility customer for gas distribution, transmission, and storage services. The new projects complement the $350 million in awards Centuri Holdings, Inc. (NYSE:CTRI) previously announced last month. While we acknowledge the potential of CTRI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Nuclear Energy Stocks to Buy Right Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 hours ago
- Business
- Yahoo
NRG vs. NEE: Which U.S. Power Stock Has Better Investment Potential?
The companies operating in the Zacks Utility – Electric Power sector offer a compelling investment case, underpinned by consistent cash flows and the reliability of regulated business models. Many utilities with a domestic focus operate under long-term power purchase agreements, providing insulation from broader economic volatility. As electricity demand continues to grow and sustained capital investments drive operational efficiency, these companies are well-positioned to deliver stable earnings and maintain dependable dividend Electric Power industry is undergoing a transformative shift toward cleaner energy sources. Utilities are increasingly allocating capital toward renewable infrastructure, including solar, wind, nuclear, battery storage and grid modernization. In response to accelerating global decarbonization efforts, early adopters of low-carbon technologies are gaining a strategic advantage. These forward-looking utilities not only mitigate risks associated with fuel price swings but also enhance their investment appeal to both institutional and retail investors. In the evolving electric power market, let's focus and compare NextEra Energy NEE and NRG Energy NRG. Both are major U.S. energy companies in the electric utilities and power generation industry, competing in clean energy, grid operations and wholesale electricity Energy stands out as a premier clean energy investment, offering a strong blend of growth and stability. Its regulated utility subsidiary, Florida Power & Light, is the largest in the U.S. and provides predictable cash flows through a stable, rate-regulated model. NextEra's subsidiary NextEra Energy Resources is the world's largest generator of wind and solar energy, driving long-term growth through clean energy projects and battery storage. NEE's strategic focus on decarbonization, supported by disciplined capital allocation and strong ESG credentials, positions it well for continued outperformance in a transitioning energy Energy presents a compelling investment case with its integrated power model and commitment to decarbonization. The company secures steady cash flows through its retail electricity operations while pursuing ambitious sustainability targets, including net-zero emissions by 2050. Strategic moves like portfolio streamlining and investments in clean energy improve efficiency and support long-term growth. By maintaining a balanced energy mix of traditional and renewable sources, NRG is well-positioned to capitalize on market stability and the momentum of the global energy companies mentioned above are strong operators in the Zacks Utilities sector; a closer examination of their fundamentals is essential. A comprehensive comparison will provide valuable insight into which stock presents a more compelling investment opportunity for investors. The Zacks Consensus Estimate for NRG Energy's earnings per share in 2025 and 2026 has increased by 2.78% and 9.12%, respectively, in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 16.2%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NextEra Energy's earnings per share in 2025 has gone down by 0.27% in the past 60 days, and 2026 earnings per share has remained unchanged in the same time period. Long-term earnings growth per share is pegged at 6.55%. Image Source: Zacks Investment Research Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company's financial health and stability, often signaling strong cash flow and consistent earnings. Utilities are known for regular dividend payments to their the dividend yield for NextEra Energy is 3.22%, while the same for NRG Energy is 1.15%. The dividend yields of both companies are lower than their industry's yield of 3.33%. ROE is an essential financial indicator that evaluates a company's efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value. NRG's current ROE is 73.78% compared with NEE's ROE of 12.06%. NRG outperforms the industry's ROE of 10.09%. The Utilities sector is a capital-intensive one, and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Therefore, utilities borrow from the market and add it to their internal cash generation to fund their long-term Energy's debt-to-capital currently stands at 79.56% compared with NextEra Energy's debt-to-capital of 59.79%. NEE's debt level is a tad lower than he industry's debt-to-capital, which stands at 60.81%. NRG Energy currently appears to be trading at a slightly higher premium compared with NextEra Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).NRG is currently trading at 18.81X, while NEE is trading at 18.06X compared with the industry's 15.1X. NRG Energy's shares have gained 69.7% in the past three months compared with NextEra Energy's rally of 0.7% and the industry's return of 1.6%. Image Source: Zacks Investment Research NRG Energy and NextEra Energy are investing steadily in their infrastructure to serve customers more currently has a VGM Score of A compared with NEE's score of C. NRG's score indicates a better growth forecast, promising momentum and attractive value compared with NEE. In addition, NRG's higher ROE and increasing earnings estimates make it a better choice in the utility space. Based on the above discussion, NRG Energy currently has a marginal edge over NextEra Energy, despite the stocks carrying a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report NRG Energy, Inc. (NRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Business
- Forbes
The 6 Best Stocks To Buy Now For July 2025
Opt for companies with reasonable valuations and strong outlooks to hedge against a downturn later ... More this year. The S&P 500 is flirting with a new high this June, despite geopolitical unrest and a fast-approaching tariff deadline. When investor enthusiasm runs hot, it can be a good time to exercise caution. Should inflation or unemployment jump later this year, you'll appreciate having defensive options in your portfolio. That's why these top stocks for July have defensive qualities alongside double-digit upside potential. Any one of them could be the all-field player your portfolio needs to thrive amid the economic complexities of 2025. How These Top Stock Picks Were Chosen Analysts at Wealth Management see opportunities later this year in utilities, financials and international industrials alongside ongoing growth in technology. Utilities have long been viewed as defensive stocks, but they now have good growth potential, too—since the AI data center buildout is driving electricity demand higher. Financials can be a defensive play against rising interest rates, but they're also likely to thrive as banking regulations ease under President Trump. Also, regional financial companies and utilities have the added advantage of limited tariff exposure. The selection criteria for these top stock picks were designed to capitalize on these trends. All six stocks are either utilities or financials that meet these parameters: The six stocks chosen also pay dividends, with yields ranging from 0.7% to 6.5%. 6 Top Stocks To Buy Now In July 2025 The table below highlights six reasonably valued financial and utility stocks that are expected to deliver double-digit EPS growth this year. A review of each company follows. Metrics are sourced from company reports, and author calculations. For more top stock ideas, see this list of best stocks to buy for 2025. 1. PG&E Corporation (PCG) (H2) PCG by the numbers: PG&E sells electricity and natural gas to residential, commercial and agricultural customers in Northern and Central California. PG&E's 2025 non-GAAP core earnings EPS guidance is $1.48 to $1.52. The midpoint of the range, $1.50, represents an increase of 10.2% from 2024. Longer term, analysts expect the utility company to continue increasing earnings by high single digits, reaching EPS of $2.12 in 2029. A strong data center pipeline and aggressive capital spending plan are contributing to PG&E's optimistic outlook. The utility has 18 projects in the final engineering phase, with some scheduled to come online next year. PG&E's capital spending budget from 2025 through 2028 totals $52.5 billion. Cost control and risk mitigation are also priorities. PG&E's long-term operations and maintenance cost reduction target is 2% annually. The company exceeded this goal in 2023 and 2024. The risk mitigation efforts are focused on improving wildfire response and powerline safety. PG&E's quarterly dividend is $0.025 and the yield is 0.7%. 2. Edison International (EIX) EIX by the numbers: Edison International provides electricity to residential, commercial, agency and industrial customers in Southern California. Edison International's 2025 core EPS guidance is $5.94 to $6.34. The midpoint of the range, $6.14, is 24.5% higher than EIX's 2024 core EPS of $4.93. The EIX leadership team says the company can grow core EPS 5% to 7% annually through 2028. The targeted range for 2028 core EPS is $6.74 to $7.14. EIX's stock price fell dramatically after the California wildfires in January 2025. The stock had been trading above $80 per share since the prior summer. It's now in the $50s. Several analysts see this as a buying opportunity. The consensus price target on the utility is $76.82, equating to 51.5% upside. Edison is facing lawsuits related to the wildfires, a risk investors should weigh carefully. California has a wildfire fund to protect its utility companies from bankruptcy if courts rule one of them liable for fire damages. Unfortunately, the $21 billion fund may not be enough to cover losses from the Eaton Fire. PG&E executives have said they don't think the utilities or their shareholders should contribute to the fund. Edison International pays a quarterly dividend of $0.8275 per share, for a yield of 6.5%. 3. SouthState Corporation (SSB) SSB by the numbers: SouthState Corporation operates a regional bank serving consumer and business customers in Texas and the southeastern U.S. Analysts expect SouthState to deliver EPS of $8.62 in 2025, up nearly 24% from the $6.97 result in 2024. By 2027, analysts expect SouthState's EPS to reach $10.50. SouthState implemented pivotal changes in the first quarter. The company completed its acquisition of Independent Bank Group, with branches located in fast-growing Texas markets. SouthState also completed a sale and leaseback of 165 bank branches and restructured $1.8 billion of securities. The acquisition expands SouthState's footprint into key markets. And the restructuring helped boost the bank's net interest margin to 3.85% from 3.48% in the prior quarter. The company is well-positioned for the future, with improved financial strength and profitability. SouthState pays a quarterly per-share dividend of $0.54, for a yield of 2.3%. 4. Webster Financial Corporation (WBS) WBS by the numbers: Webster Financial Corporation operates a regional bank serving consumers and business customers in Connecticut, Massachusetts, Rhode Island and the New York metro. The 2025 EPS expectation for Webster Financial is $5.79, up 32.6% from last year's $4.37 result. Additionally, eight analysts project the company's 2027 earnings to eclipse $7 per share. Webster reported solid first-quarter 2025 results that included deposit and loan growth across multiple business lines. The bank also grew net interest income 0.6% on a higher net interest margin. However, WBS did increase its allowance for credit losses in the first quarter. CFO Neal Holland cited an uncertain economic outlook and the need to prepare "for a wider range of economic scenarios." Despite the uncertainty, WBS increased its common stock repurchase authorization by a generous $700 million in May. The move signals confidence in the bank's outlook. Webster Financial pays a quarter per-share dividend of $0.10, for a yield of 2.9%. 5. UMB Financial Corporation (UMBF) UMBF by the numbers: UMB Financial provides regional banking services to consumers and businesses in the Midwest and California. Services include traditional depository services plus wealth management, financial planning and institutional banking. Analysts expect UMBF to produce 2025 EPS of $10.23, a 13.8% improvement over 2024 EPS of $8.99. The earnings growth is projected to continue, albeit more slowly, in 2026 and 2027. The 2027 EPS outlook for UMBF is $12.25. UMB Financial has historically been a conservatively managed business. Strategic priorities include balance sheet health, liquidity and above-average credit quality. This approach has contributed to double-digit net income growth in three of the last four years. Business prudence also allowed UMBF to close the largest acquisition in its history in January. The purchase of Heartland Financial increased the bank's asset size by 32% and expanded UMBF's footprint into California, New Mexico, Minnesota, Wisconsin and Iowa. The acquisition also contributed to a 37-basis point reduction in deposit costs and a 39-basis point improvement in net interest margin in the first quarter. UMBF pays a quarterly dividend of $0.40, for a modest yield of 1.5%. 6. Old National Bancorp (ONB) ONB by the numbers: Old National Bancorp operates the sixth largest commercial bank in the Midwest. The bank offers retail and commercial banking, wealth management, investing and capital markets services. Old National Bancorp produced 2024 EPS of $1.68. Analysts expect 2025 EPS of $2.17, which equates to earnings growth of 29.2%. Current EPS projections for 2026 and 2027 are $2.66 and $2.98, respectively. ONB's first quarter results beat analyst expectations for revenue and adjusted EPS. The leadership team cited solid organic loan and deposit growth combined with tight control of operating expenses. Other highlights included continued strong capital ratios and stable credit quality metrics. The positive results positioned ONB well for its merger with Bremer Bank, which closed after quarter-end on May 1. The ONB team expects the transaction to contribute to lower deposit costs and loan growth going forward. The combined entity at close had about $70 billion in assets and $37 billion in assets under management, placing it in the top 25 of U.S.-based banks. ONB pays a quarterly per-share dividend of $0.14, for a yield of 2.6%. Bottom Line For the second half of 2025, utility and midsized financial stocks could provide defensive growth, plus a nice boost to your cash income. Opt for companies with reasonable valuations and strong outlooks to hedge against a downturn later this year.
Yahoo
a day ago
- Business
- Yahoo
3 No-Brainer Safe Dividend Stocks to Buy With $1,000 Right Now
Dividends that get paid in good markets and bad can help you sleep well at night when the world is in turmoil. There is one group of dividend stocks that provide a necessity for modern life, regardless of what is going on in the world. Investors with $1,000 can invest in a stock offering dividend growth, a reliable income stream, and/or one that is turning its business around. 10 stocks we like better than NextEra Energy › Geopolitical tensions have been high. Tariff uncertainty could also upend the economy and market. If you are worried about the future, then you'll probably want to buy a safe dividend stock. Perhaps one that, in years past, would have been recommended to widows and orphans. Namely a utility. If you have $1,000 to invest, you'll likely find NextEra Energy (NYSE: NEE), Black Hills (NYSE: BKH), or Dominion Energy (NYSE: D) an attractive option. Each one has a safe business and an attractive dividend yield. But there's some key differences you'll want to understand before buying. To be fair, $1,000 is a somewhat random figure. It could be $100,000 or $100. The key point here is that you have money you want to invest, but where? The world seems so uncertain at the moment. But there is one very certain thing, your modern life requires energy. And while you could live without power, you almost certainly don't want to. Utilities are expensive to build and it would be nearly impossible to have two utilities serving the same customer base. So the government grants utilities monopolies in the areas they serve, but regulates the utilities, controlling the utility's rates and capital investment plans. The goal is to provide a balance between return and customer cost, which usually ends up leaving the utility with a slow and steady growth profile as a business. These companies are not meant to be exciting, they are meant to provide customers with what is, basically, a life necessity while attracting investors with returns that are modest, but not insignificant. Dividends play a big role in those returns. Just like in other industries, there are different dynamics to each utility stock. So you can't simply throw a dart and expect to pick a good one. The differences, meanwhile, mean there are utilities that will interest all different kinds of dividend investors. NextEra Energy, Black Hills, and Dominion Energy cover a lot of ground. NextEra Energy is a dividend growth stock. It has increased its dividend annually for more than three decades and, more to the point, the annualized dividend increase over the past decade was a huge 10%. The dividend yield, meanwhile, is roughly 3.2%, which happens to be slightly higher than the roughly 2.8% yield of the average utility. This is a high-yield dividend growth opportunity. The core of NextEra's business is its regulated utility operation in Florida. But the real growth story is its renewable power business, which ranks among the largest in the world. Although the non-regulated renewable power business increases risk to some degree, NextEra uses long-term contracts that create reliable income streams. If you like dividend growth, and believe that clean energy has a long runway for growth ahead, NextEra Energy could be right for your portfolio. A $1,000 investment would buy you around 13 shares. Black Hills isn't nearly as exciting, operating regulated electric and natural gas assets in parts of Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. There's really nothing special about the business, though its customer base is growing nearly twice as fast as the overall U.S. population. That suggests that continued growth is highly likely as the utility invests to serve those customers. Which brings up the big attraction here, Black Hills is a Dividend King with more than five decades of annual dividend increased behind it. And it offers an above average 4.8% yield. If you like large and reliable dividends, Black Hills could be for you. With $1,000 you can buy roughly 17 shares. If you are a bit more adventurous you might want to look at Dominion Energy. This utility has a dividend yield of 4.9%. That said, the dividend isn't growing right now and it probably won't for a couple of years. This is because Dominion has been streamlining its business so that it is now largely just a regulated electric utility. It is currently working on strengthening its balance sheet and reducing its payout ratio so that it is more in-line with its utility peers. It is, basically, a utility turnaround story. What's notable is that the company's business is well situated to take advantage of big industry trends, including the fact that it operates in one of the largest data center markets in the world and that it is building a large offshore wind farm. If you don't mind collecting a fat yield while you wait for dividend growth to resume, this could be a good choice. And when dividend growth does come back into play, it is highly likely that the market will afford Dominion a higher valuation. If you buy into Dominion's turnaround with $1,000, you will get roughly 18 shares. The caveat here is that utilities tend to be pretty boring investments. That's even true of Dominion Energy, despite it being a turnaround story. If you are looking for a reliable income stream, dividend grower NextEra, reliable dividend payer Black Hills, and even turnaround story Dominion could all find a place in your dividend portfolio today. Before you buy stock in NextEra Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NextEra Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Reuben Gregg Brewer has positions in Black Hills and Dominion Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. 3 No-Brainer Safe Dividend Stocks to Buy With $1,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
