Xcel Energy reported ongoing earnings per share of $1.52 during the third quarter, up from $1.24 in the same period in 2025. Earnings are on track to meet our full-year estimate and management's guidance.
Xcel has raised its dividend every year since 2003, including a 4% increase in 2026 to $2.37 per share. We expect similar dividend growth in the future.
Bears
Like all utilities, Xcel will see rising interest rates raise its borrowing costs and make its dividend less attractive to income investors.
Xcel Energy manages utilities serving 3.9 million electric customers and 2.2 million natural gas customers in eight states. Its utilities are Northern States Power, which serves customers in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan; Public Service Company of Colorado; and Southwestern Public Service Company, which serves customers in Texas and New Mexico. It is one of the largest renewable energy suppliers in the US, with more than half of its electricity sales coming from carbon-free energy. It plans to sell its Michigan assets in 2027.