The US energy sector presents interesting opportunities for investors seeking stable income and growth potential. One of the main attractions is an attractive dividend yield in excess of 4%, which is supported by stable financial fundamentals and a long history of regular payouts. Dividend growth is around 5% per annum, while the sustainability of a payout ratio in the 60-70% range ensures that the company can continue to reward shareholders while investing in future growth.

Investment of $16.2 billion is expected to support earnings per share growth of 4-6% per year through 2029, with analysts forecasting growth of up to 8.4% for 2024. This combined approach to dividends and growth makes energy companies attractive.

Company performance

Evergy $EVRG is a U.S. energy company that was formed in 2018 through the merger of two established companies, Great Plains Energy and Westar Energy. This merger created a major player in the energy market, which now provides electricity to approximately 1…