CenterPoint Energy

Methodology

CenterPoint Energy's regulated electric and gas utilities serving Texas and surrounding regions provide predictable earnings based on approved rate structures and infrastructure spending. The company's exposure to Houston's growing economy adds upside to typical utility growth. This calculation works well for CenterPoint given regulatory protections, though weather impacts and regulatory lag can create near-term volatility around steady long-term earnings trends.

Methodology

CenterPoint's PEG ratio typically ranges from 2.5-3.5, reflecting typical regulated utility valuations with modest premium for Houston market exposure and growth prospects. The company's steady mid-single-digit earnings growth from rate-base expansion and favorable demographics justify premium multiples given utility stability. Compare to other Texas and Southwest utilities to assess whether CenterPoint's market positioning warrants its valuation.

Methodology

CenterPoint Energy's dividend yield (typically 2.5-3.5%) is important for utility investors seeking income and capital preservation from regulated energy infrastructure. The company targets steady dividend growth aligned with rate-base driven earnings expansion. PEGY is relevant for CenterPoint, as the combination of yield and predictable growth creates the defensive total return profile characteristic of regulated utilities serving growing population centers.