A nuclear utility’s steadily raised dividend — covered, and under 1%. The regular quarterly rate is $0.4265 ($1.71 annualized), raised 10% from $0.3878 in 2026, and it is 37.7% of fiscal 2025 free cash flow. The dividend has risen through the series shown with no cut. Leverage of about 4.6× is stated on a utility basis — net debt against operating income plus depreciation — under the §3 sector note for utilities, not as a §3 stock leverage fail. The 0.66% yield is under 1%, which grades the card warn under §1. A vendor DPS-TTM figure of $7.56, which includes non-regular amounts, was rejected; the regular rate above is the verified figure.
Key risk: A capital-intensive nuclear fleet — large capex and regulatory outcomes decide how much cash is left for the dividend.
Changes if: The yield rises above 1% through raises, or free-cash-flow payout falls below 30%.
- ✓FCF payout (§3) 37.7% of FY2025 free cash flow — inside the 60% pass band.
- ✓Dividend history (§3) Quarterly rate raised 10% in 2026; no cut in the series.
- !Leverage (§3, utility basis) About 4.6× on a utility basis (net debt ÷ operating income + depreciation); flagged as a sector-appropriate measure, not a §3 stock fail.
- !Yield (§1) 0.66% — under 1%, graded warn as a growth holding.
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.