This Under-$55 Utility Stock Could Be Your Ticket to Passive-Income Freedom
Key Points
Portland General Electric is expanding into Washington state through an acquisition with PacifiCorp.
The stock has risen over 30% in the past 12 months, and AI-related demand should boost it further.
- 10 stocks we like better than Portland General Electric ›
If you're searching for reliable income at a reasonable price, look no further than Portland General Electric (NYSE: POR). Shares of the Pacific Northwest utility business are currently trading in the low $50s, but the stock offers a strong dividend and steady growth. Even better, its valuation is quite reasonable at a time when many utilities and energy stocks are becoming more expensive.
Portland General Electric's quarterly dividend currently pays $0.55 per share. This amounts to a yield that is slightly above 4%. That's higher than the broader market average and competitive within the utility sector. Meanwhile, the company's forward price-to-earnings (P/E) ratio of about 14 is below the sector average of roughly 23.
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Portland General Electric rewards shareholders with dividends, but the company also balances payouts with strategic capital reinvestments. The utility company is expanding its capabilities in Oregon and now into Washington state with its February acquisition of PacifiCorp's Washington-based utility operations.
The company has raised its dividends for more than a decade, and with artificial intelligence (AI)-related power demand as a catalyst, now is a good time for income investors to look at Portland General Electric. The company, which has a $6 billion market capitalization, pays dividends consistently but it also provides investors with a surprising amount of growth potential ahead.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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