ST. LOUIS - Spire Inc. (NYSE:SR), a major natural gas company, has announced that its board of directors has approved dividend payments for both its common and preferred stock shareholders. The declared quarterly common stock dividend is $0.755 per share, scheduled for payment on October 2, 2024, to shareholders on record as of September 11, 2024.
This move continues Spire's long-standing tradition of delivering shareholder returns, with the company having paid cash dividends since 1946. Moreover, this year marks the 21st consecutive year of Spire raising its common stock dividend on an annualized basis.
In addition to the common stock dividend, Spire's board has also declared a regular quarterly dividend for its 5.90% Series A Cumulative Redeemable Perpetual Preferred Stock. Shareholders of this preferred stock are set to receive $0.36875 per depositary share on November 15, 2024, with the record date set for October 25, 2024.
Spire Inc. serves 1.7 million homes and businesses across Alabama, Mississippi, and Missouri, making it one of the largest publicly traded natural gas companies in the nation. The company's operations extend beyond utility services to include Spire Marketing and Spire Midstream, with a focus on organic growth, infrastructure investment, and innovation.
This information is based on a press release statement from Spire Inc.
In other recent news, Spire Inc. has been the subject of several important developments. The company recently reported a decrease in net economic earnings per share to $3.45 in its fiscal second quarter, down from $3.70 in the same period last year, mainly due to warmer weather in Missouri and higher interest expenses.
Still, Spire reaffirmed its fiscal year 2024 guidance, projecting net economic earnings of $4.25 to $4.45 per share and maintaining its long-term growth target of 5% to 7%.
In terms of analyst updates, a Wells Fargo analyst increased the stock price target for Spire to $66.00 from the previous $64.00, while maintaining an Equal Weight rating on the stock. This adjustment followed the evaluation of Spire's fiscal second-quarter results and led to a slight revision in the 2024 earnings outlook for the company. The analyst also noted potential for Spire's stock value to increase if the company can achieve higher than the assumed 8% return on equity in Missouri by 2026.
Conversely, Mizuho downgraded Spire's stock from Buy to Neutral and adjusted the price target to $62 from $64. The downgrade reflects a belief that Spire is now more fairly valued, and investors may have to wait longer than anticipated for significant balance sheet repair and targeted earnings growth. These recent developments offer insights into the current state of Spire Inc. and its financial outlook.
InvestingPro Insights
Amidst the announcement of Spire Inc.'s dividend payments, InvestingPro data and insights offer a deeper look into the company's financial health and investment potential. Spire's commitment to shareholder returns is underscored by an impressive track record of dividend reliability, with InvestingPro Tips highlighting that the company has not only maintained but also increased its dividend payments for 54 consecutive years.
From a valuation standpoint, Spire's current market capitalization stands at $3.89 billion, with a Price to Earnings (P/E) ratio of 16.19. This P/E ratio suggests a reasonable valuation relative to the company's earnings, which can be appealing to value-oriented investors.
Moreover, the stock is trading near its 52-week high, at 98.74% of the peak, reflecting strong investor confidence and potential for stability. Investors should note that the InvestingPro Tips also indicate the stock is currently in overbought territory according to the Relative Strength Index (RSI), which may suggest a period of consolidation or pullback could be on the horizon.
For those interested in the company's financial performance, Spire has reported a gross profit of $929.2 million over the last twelve months as of Q2 2024, with a gross profit margin of 35.55%. This level of profitability, along with the company's history of dividend growth, which most recently was at 4.86%, may offer a compelling case for income-focused investors.
For investors seeking additional insights and analysis on Spire Inc., InvestingPro provides a comprehensive suite of tools and metrics. Currently, there are additional InvestingPro Tips available, which can be accessed through: https://www.investing.com/pro/SR. Moreover, readers of this article can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enhancing their investment decision-making with even more detailed data and expert commentary.
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