Covered, compounding — regulated. A 2.32% yield on a 47.3% payout of the midpoint of fiscal 2026 EPS guidance ($8.40–$8.50) is well covered: $1.00 a quarter, with the indicated fiscal 2026 annual dividend of $4.00 up 14.9% over fiscal 2025, backed by a regulated rate base and 60% equity capitalization.
Key risk: Capital intensity — about $4.2 billion of planned fiscal 2026 capital spending, funded with debt and equity issuance, dilutes per-share growth if regulatory outcomes lag spending.
Changes if: Regulatory outcomes stall while capital spending stays near $4.2 billion a year, or the payout pushes toward 60% of guided EPS. Rate-base growth is the tripwire here.
- ✓Payout-coverage check: 47.3% of the $8.45 midpoint of reaffirmed fiscal 2026 EPS guidance — $4.00 indicated against $8.40–$8.50 guided. Covered, with regulated earnings behind it.
- ✓Yield check: 2.32% indicated — $1.00/qtr × 4 at the $172.21 close on Oct. 23, 2026. Modest, earned utility yield, not a trap yield.
- ✓Dividend growth check: Indicated fiscal 2026 dividend of $4.00, up 14.9% over fiscal 2025, per the company's fiscal Q3 2026 release — a step-change raise, not a token one.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.