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How Xcel Energy’s Payout Compares to Its Peers’

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Payout ratio

Let’s take a look at some more interesting facts about Xcel Energy’s (XEL) dividend profile. Xcel Energy had a payout ratio of 63% over the last 12 months. 

A company’s payout ratio represents how much of its income it distributes to shareholders in the form of dividends. Utilities pay a sizable portion of their earnings as dividends and thus tend to have very high payout ratios.

xel stats

NextEra Energy (NEE) had a payout ratio of ~59% in 2017, lower than the industry average (XLU) (IDU). Southern Company’s (SO) payout ratio was ~76%, while Duke Energy’s (DUK) ratio was close to 97% in the last 12 months.

Dominion Energy (D) stock has followed a significant downtrend since the announcement of its merger with SCANA (SCG) earlier this year. For a comparison of Dominion and NextEra Energy (NEE), read Dominion and NextEra Energy: Which Dividend Is More Attractive? 

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