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Sempra Energy’s Total Returns and Outlook

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Total returns

Sempra Energy (SRE), including dividends, returned more than 18%, while broader utilities (XLU) returned 17% in the last 12 months. We have considered capital appreciation and dividends paid in a specific period to calculate the total returns.

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In the last five years, Sempra Energy underperformed its peers in terms of total returns. During this period, the company returned 54%, while the Utilities Select Sector SPDR ETF (XLU) returned 67%. SPY returned more than 70% during this period. Along with Sempra Energy’s stable dividends, its healthy market performance contributed to the total returns.

Edison International (EIX) returned 34% in the last five years. The company’s recent weakness in the fourth quarter of 2018 due to the wildfire investigation largely dented its market performance and hurt investors’ returns.

Utilities have been safe havens amid market uncertainty. Many utility stocks have outperformed broader markets in the long term. To learn more, read These Three Utility Stocks Have Delivered Maximum Long-Term Returns.

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