Sempra’s (SRE) Dividend Yield: What Makes it Stand Out This Month

Sempra (NYSE:SRE) is included among the Best High Yield Stocks to Buy in October.

Sempra’s (SRE) Dividend Yield: What Makes it Stand Out This Month

Sempra (NYSE:SRE) is involved in regulated utilities and building energy infrastructure. Its utility operations provide electricity and natural gas in California by San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas), and in Texas by Oncor and Sharyland Utilities. These companies have millions of customers with government-regulated pricing structures that provide stable income and secure cash flows.

Sempra (NYSE:SRE) announced on Sept. 18 a quarterly dividend of $0.645, consistent with the previous dividend. The company most recently increased its payout by 4% in February this year. Oct. 1 is the stock’s ex-dividend date, and it has a 2.91% dividend yield through Sept. 27.

In addition to utilities, Sempra (NYSE:SRE) is a major investor in energy infrastructure like liquefied natural gas (LNG) export projects and energy networks in Mexico and the US. The success of this business depends on building, operating, and exporting successfully from these plants. Success drivers are securing regulatory approvals, maintaining capital costs, and navigating the transition of the industry towards renewables and clean fuels. In recent years, Sempra has increasingly depended on regulated utility expansion to provide stability, insulating against vulnerability to non-regulated business.

While we acknowledge the potential of SRE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SRE and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.