Is SR a good stock to buy? We came across a bullish thesis on Spire Inc. on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on SR. Spire Inc.’s share was trading at $79.48 as of June 24th. SR’s trailing and forward P/E were 16.09 and 17.83 respectively according to Yahoo Finance.
QiuJu Song/Shutterstock.com
Spire Inc. (SR) is a St. Louis-based regulated gas utility operating across Missouri, Alabama, and Mississippi, positioned as a steady, infrastructure-heavy business that earns predictable returns by transporting and distributing natural gas through a vast pipeline network. The company operates a classic utility model where earnings are driven by regulated rate bases rather than commodity exposure or consumer cycles, making its cash flows highly visible and defensible.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Its business mix also includes a smaller gas marketing and midstream component, but the core investment case is anchored in long-duration utility assets that expand steadily through infrastructure spending and approved rate cases, effectively compounding value through pipes rather than volatility-driven growth narratives.
Spire currently offers a 2.26% dividend yield with an annual payout of $3.80 per share, supported by a 58.00% payout ratio that leaves room for reinvestment and balance sheet stability, while maintaining an impressive 22-year streak of consecutive dividend increases and a 5-year dividend growth rate of 26.00%, reflecting disciplined capital allocation and consistent shareholder returns.
In fiscal Q2 2026, the company reported adjusted earnings of $3.76 per share versus $3.60 a year earlier, with revenue of approximately $1.02 billion, while operating income rose to $303.5 million and full-year guidance was raised to a range of $5.40 to $5.60 per share, signaling resilient earnings power despite near-term revenue softness. The growth trajectory is being driven by ongoing investments in storage, transmission, and distribution infrastructure, which steadily expand the regulated rate base and create compounding earnings potential over time.
This positions Spire as a stable compounder benefiting from essential energy demand, particularly in winter-driven markets where natural gas remains indispensable. With consistent dividend growth, rising earnings guidance, and a structurally defensive business model, Spire offers a durable income profile and moderate upside potential as rate-base expansion continues to support long-term value creation for shareholders.
Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Oliver | MMMT Wealth in April 2025, which highlighted valuation upside after a 40%+ decline and favorable oil supply dynamics versus ExxonMobil, Chevron, and BP. OXY’s stock price has appreciated by approximately 28.27% since our coverage. Serhio MaxDividends shares a similar view but emphasizes Spire Inc.’s regulated utility model, dividend consistency, and rate-base driven compounding.
Spire Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held SR at the end of the first quarter which was 19 in the previous quarter. While we acknowledge the risk and potential of SR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
