Vectren Corporation (VVC) is a $5 billion diversified utility in Indiana. It’s currently trading at a dividend yield of 2.9% and has increased dividends for the past 58 consecutive years.
Vectren’s historical dividend growth lies at similar levels to peers’ average. In the last five years, it increased its per-share dividends by 4% compounded annually. Its payout ratio was near 157% in the last 12 months. Vectren’s dividend payments in this period were higher than its profits, implying that it paid them through debt or reserves. Southern Company (SO) and Duke Energy’s (DUK) payout ratios stand around 85%–90%.
According to Wall Street analysts’ consensus, Vectren stock has a mean price target of $69.7 against its current market price of $61.0, which shows a potential gain of more than 14% in a year.
Of the total five analysts tracking Vectren stock, one analyst recommends it as a “strong buy” while four analysts rate it as a “hold.” None of the analysts rate it as a “sell” as of January 25.
You can read dividend profiles of the top utilities from the S&P 500 in Analyzing the Largest S&P 500 Utilities’ Dividend Profiles.