Xcel Energy’s dividend statistics
Let’s take a look at Xcel Energy’s (XEL) dividend profile. The company, which has raised its dividends in the last 15 consecutive years, had a payout ratio of 63% in 2017. Payout ratios represent how much of companies’ profits are distributed to shareholders in the form of dividends. Utilities pay a large portion of their earnings as dividends. Duke Energy (DUK), the largest rate-regulated utility, had a payout ratio of ~96% in 2017.
NextEra Energy (NEE) had a payout ratio of ~59% in 2017—lower than the industry average (XLU) (IDU). Utility stocks are sometimes perceived as slow-moving and less interesting. With respect to stable and reliable dividends, these characteristics are vital. To learn more, please read These Utilities Have Raised Dividends for More than 40 Years.