OGE Energy Corp (NYSE:OGE) is a true Dividend Rock Star. Its yield of 4.32% makes it one of the market’s top dividend payer. In the past ten years, OGE Energy has also grown its dividend from 0.7 to 1.33. Below, I have outlined more attractive dividend aspects for OGE Energy for income investors who may be interested in new dividend stocks for their portfolio. View our latest analysis for OGE Energy
What Is A Dividend Rock Star?
It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future
High Yield And Dependable
OGE Energy currently yields 4.32%, which is high for Electric Utilities stocks. But the real reason OGE Energy stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. OGE has increased its DPS from $0.7 to $1.33 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. OGE Energy has a trailing twelve-month payout ratio of 63.24%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 68.10%, leading to a dividend yield of around 4.64%. Furthermore, EPS should increase to $1.99.
There aren’t many other stocks out there with the same track record as OGE Energy, so I would certainly recommend further examining the stock if its dividend characteristics appeal to you. However, given this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three fundamental aspects you should further examine:
- 1. Future Outlook: What are well-informed industry analysts predicting for OGE’s future growth? Take a look at our free research report of analyst consensus for OGE’s outlook.
- 2. Valuation: What is OGE worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether OGE is currently mispriced by the market.
- 3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.