Fintel reports that on July 7, 2023, Guggenheim maintained coverage of Centerpoint Energy (NYSE:CNP) with a Buy recommendation.
Analyst Price Forecast Suggests 11.30% Upside
As of July 6, 2023, the average one-year price target for Centerpoint Energy is 32.81. The forecasts range from a low of 30.30 to a high of $36.75. The average price target represents an increase of 11.30% from its latest reported closing price of 29.48.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Centerpoint Energy is 8,874MM, a decrease of 4.96%. The projected annual non-GAAP EPS is 1.51.
Centerpoint Energy Declares $0.19 Dividend
On April 20, 2023 the company declared a regular quarterly dividend of $0.19 per share ($0.76 annualized). Shareholders of record as of May 18, 2023 received the payment on June 8, 2023. Previously, the company paid $0.19 per share.
At the current share price of $29.48 / share, the stock's dividend yield is 2.58%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.26%, the lowest has been 2.08%, and the highest has been 9.59%. The standard deviation of yields is 1.08 (n=236).
The current dividend yield is 0.63 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.56. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.27%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1292 funds or institutions reporting positions in Centerpoint Energy. This is a decrease of 48 owner(s) or 3.58% in the last quarter. Average portfolio weight of all funds dedicated to CNP is 0.26%, a decrease of 2.70%. Total shares owned by institutions decreased in the last three months by 5.29% to 722,816K shares. 
The put/call ratio of CNP is 0.11, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital International Investors holds 69,402K shares representing 11.00% ownership of the company. In it's prior filing, the firm reported owning 77,889K shares, representing a decrease of 12.23%. The firm decreased its portfolio allocation in CNP by 16.13% over the last quarter.
ABALX - AMERICAN BALANCED FUND holds 25,469K shares representing 4.04% ownership of the company. No change in the last quarter.
Boston Partners holds 25,020K shares representing 3.96% ownership of the company. In it's prior filing, the firm reported owning 25,133K shares, representing a decrease of 0.45%. The firm decreased its portfolio allocation in CNP by 61.27% over the last quarter.
Capital Research Global Investors holds 24,516K shares representing 3.89% ownership of the company. In it's prior filing, the firm reported owning 24,159K shares, representing an increase of 1.45%. The firm decreased its portfolio allocation in CNP by 5.87% over the last quarter.
Deutsche Bank Ag\ holds 21,999K shares representing 3.49% ownership of the company. In it's prior filing, the firm reported owning 22,565K shares, representing a decrease of 2.57%. The firm decreased its portfolio allocation in CNP by 7.33% over the last quarter.
Centerpoint Energy Background Information
(This description is provided by the company.)
As the only investor-owned electric and gas utility based in Texas, CenterPoint Energy, Inc. is an energy delivery company with electric transmission and distribution, power generation and natural gas distribution operations that serve more than 7 million metered customers in Arkansas, Indiana, Louisiana, Minnesota, Mississippi, Ohio, Oklahoma and Texas. As of September 30, 2020, the company owned approximately $33 billion in assets and also owned 53.7 percent of the common units representing limited partner interests in Enable Midstream Partners, LP, a publicly traded master limited partnership that owns, operates and develops strategically located natural gas and crude oil infrastructure assets. With approximately 9,600 employees, CenterPoint Energy and its predecessor companies have been in business for more than 150 years.
Additional reading:
- Statement of Eligibility of The Bank of New York Mellon Trust Company, N.A., as Trustee, with respect to the Indenture, dated as of May 19, 2003
- Statement of Eligibility of The Bank of New York Mellon Trust Company, N.A., as Trustee, with respect to the form of Junior Subordinated Indenture
- Statement of Eligibility of The Bank of New York Mellon Trust Company, N.A., as Trustee, with respect to the General Mortgage Indenture, dated as of October 10, 2002
- Statement of Eligibility of The Bank of New York Mellon Trust Company, N.A., as Trustee, with respect to the Indenture, dated as of February 1, 1998
- Officer’s Certificate, dated as of March 23, 2023
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
