Covered, regulated — inside its payout target. A 3.26% yield on a $0.285 quarterly dividend, raised 4.6% in early 2026 from $0.2725, is covered on the company's own plan: 2026 ongoing EPS guidance of $1.90–$1.98 puts the $1.14 indicated dividend at about 59% of the $1.94 midpoint, inside the 50–60% target, with 4–6% annual dividend growth targeted through 2029.
Key risk: Regulated capital plan — $23 billion of investments through 2029 need timely rate recovery; delays or a denied rate case squeeze the cushion first.
Changes if: Guidance midpoint falls below about $1.90, or the payout pushes past 60% on ongoing earnings.
- ✓Payout-coverage check: About 59% of the $1.94 guidance midpoint — inside the 50–60% target range, with 2026 EPS guidance reaffirmed after Q2.
- ✓Yield check: 3.26% indicated — $0.285/qtr × 4 at the $34.98 close on Oct. 23, 2026. Regulated utility income, not a special.
- ✓Dividend growth check: Raised 4.6% in 2026, from $0.2725 to $0.285; the company targets 4–6% annual dividend growth through 2029.
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.