Morningstar Rating

Stock Research and Analysis

by Travis Miller

Bulls Say

Xcel has raised its dividend every year since 2003 and has set a 5% to 7% target growth rate. It now pays $1.28 per share annualized.
Renewable portfolio standards in Minnesota and Colorado are a key source of support for wind and transmission projects.
Xcel's plan to form an independent transmission company could open the door to more investment opportunities and higher realized returns. Read more 

Bears Say

Low interest rates are giving regulators justification to cut Xcel's allowed returns, moves that would slow or even stall earnings growth.
Emissions regulations could make Xcel's low-cost coal plants, which produce half of the company's total power, more expensive for customers.
Energy-efficiency improvements are limiting energy demand growth, putting more pressure on Xcel to seek customer rate increases. Read more 

Management

Xcel's management team has shown its acumen at maintaining constructive regulatory relations across one of the most diverse service territories of any U.S. utility. Regulatory relations are a key value creator for utilities, and that has supported its   Read more 

Profile

Xcel Energy manages four utilities serving 3.5 million electric customers and 1.9 million natural gas customers in eight states. Its utilities are Northern States Power,  Read more 

The Future Looks Bright for This Wide-Moat Utility 
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