CNP

CenterPoint Energy (CNP), a Houston-based utility company, is highlighted as a strong dividend play with a current yield of 2.37% and an annualized dividend of $0.96, up 9.1% year-over-year. The company has increased dividends 5 times over the last 5 years with an average annual increase of 8.33%. With a conservative 48% payout ratio and expected earnings growth of 8.52% for 2026, CNP offers consistent cash flow for income investors, though it carries a Zacks Rank of #3 (Hold).

CenterPoint Energy (CNP) and Consolidated Edison (ED) are outperforming the broader Utilities sector year-to-date. CNP is up 0.5% while the sector has declined 3.3%, and ED is up 5.4%. Both stocks hold Zacks Rank #2 (Buy) ratings with improving analyst sentiment on earnings estimates.

The Utility-Electric Power industry is positioned for growth driven by renewable energy expansion, increasing electricity consumption from AI data centers and electric vehicles, and rising electricity prices. However, higher interest rates pose financing challenges for capital-intensive utilities. Four utility stocks with Zacks Rank #2 (Buy) ratings are recommended: Entergy Corp., FirstEnergy Corp., CenterPoint Energy, and PPL Corp., all showing solid earnings growth projections and financial stability.