SRE, PCG, and EIX: Analyzing Their Total Returns
The total return is a better measure to assess utility stocks’ performance. It takes the capital gain and dividends paid in a particular period into consideration. In the past year, PG&E’s (PCG) returns, including dividends, stood at 10%. In the last five years, it returned 12% compounded annually. Sempra Energy’s (SRE) returns, including dividends, were 12.6% and 14% in the past year and in the last five years, respectively.
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The Utilities Select Sector SPDR (XLU) returned 12% in the past year. In the last five years, it returned 12% compounded annually. The SPDR S&P 500’s (SPX-INDEX) (SPY) returns, including dividends, were ~14% compounded annually in the last five years.
The three utilities under consideration have performed well. However, they seem to have outperformed broader utilities and equities over the longer term.
To learn about top utilities’ total returns, read This Utility Has Beaten Broader Markets for the Past Five Years.