Here's Why You Should Add OGE Energy Stock to Your Portfolio Now

OGE Energy's OGE strategic investments are expected to strengthen its infrastructure, which should further boost its performance. The company also benefits from grid enhancements. Given its growth opportunities, OGE Energy makes for a solid investment option in the utility sector.Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.OGE’s Growth ProjectionsThe Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 0.5% to $2.16 in the past 30 days.The Zacks Consensus Estimate for 2024 sales is pinned at $2.84 billion, indicating a year-over-year increase of 6.4%.OGE’s long-term earnings (three-to-five-year) growth rate is 5.18%.Debt Position of OGECurrently, the company’s total debt to capital is 53.29%, much better than the industry’s average of 59.8%.The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.7. The ratio, being greater than one, reflects OGE Energy’s ability to meet future interest obligations without difficulties.Dividend History of OGEThe company has consistently increased shareholders' value by paying regular dividends. Currently, its quarterly dividend is 42.125 cents per share, resulting in an annualized dividend of $1.685. Based on utility earnings, the company targets a dividend payout ratio of 65-70%. The current dividend yield is 3.98%, better than the Zacks S&P 500 composite’s 1.21%.OGE’s Focus on InvestmentsOGE Energy is the largest electric utility in Oklahoma. It is pursuing an aggressive investment strategy to upgrade its infrastructure and provide seamless services to its customers. The company plans to spend $6 billion between 2024 and 2028. For 2024, OG&E has allocated $1.1 billion, which includes $870 million for strengthening its transmission, distribution and grid expansion operations.In 2023, the company’s grid enhancement investments saved an average of more than 320 minutes of interruption to customers. Moreover, its automated restorations saved more than 6.2 million customer minutes of interruption.OGE’s Stock Price PerformanceIn the past six months, the company’s shares have risen 14.4% compared with the industry’s growth of 1.5%.  Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Vistra VST, IDACORP IDA and WEC Energy Group WEC, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.VST’s long-term earnings growth rate is 17.4%. The company delivered an average earnings surprise of 7.1% for the trailing four quarters.IDACORP’s long-term earnings growth rate is 8.31%. The Zacks Consensus Estimate for IDA’s 2025 EPS implies a year-over-year improvement of 8.3%.WEC Energy’s long-term earnings growth rate is 7.55%. The Zacks Consensus Estimate for 2025 EPS implies a year-over-year improvement of 7.8%. Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OGE Energy Corporation (OGE): Free Stock Analysis Report WEC Energy Group, Inc. (WEC): Free Stock Analysis Report IDACORP, Inc. (IDA): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks