This Utilities Stock Beat the S&P 500 in the First Half of 2024. Is It Still a Buy?
Utility stocks tend to be quiet performers. They typically deliver steady earnings and dividend growth, which adds up to decent but often unspectacular returns. That was the case in the first half of this year. As measured by the Utilities Sector SPDR ETF, utilities delivered a 7.6% gain in the first half (and a 9.3% total return when adding in dividend income). While solid, they underperformed the S 500's 14.5% gain and 15.3% total return.
However, there was one huge outlier among utility stocks: Constellation Energy (NASDAQ: CEG). Shares of the leading nuclear energy producer surged more than 70%. Here's a look at what fueled its rally and whether it's still a buy.
Constellation Energy unveiled its financial outlook for 2024 and beyond in late February. The leading clean energy producer expects to grow its base earnings by at least 10% annually through the end of the decade. It also expects to deliver robust dividend growth. It boosted its payout by 25% this year, which exceeded its 10% annual growth target. The company also launched a new $1 billion share repurchase program.
Source Fool.com
