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Reasons to Include Sempra Energy Stock in Your Portfolio Now

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Key Takeaways

  • Sempra's total debt to capital of 50.19% is lower than the industry average of 51.09%.
  • The company plans $56B in capital spending through 2029, boosting infrastructure growth.
  • SRE offers a 3.16% dividend yield and has outperformed industry returns in recent months.

Sempra Energy (SRE - Free Report) continues to benefit from its structured investment program in infrastructure development, aimed at meeting rising electricity demand and delivering safe, reliable and efficient services to its customers. Given its strong growth, SRE makes for a solid investment option in the Zacks Utility - Gas Distribution industry.

Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock a reliable investment pick at the moment.

SRE’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for SRE’s 2025 earnings per share (EPS) is pegged at $4.68, which implies a year-over-year rise of 0.7%.

The Zacks Consensus Estimate for SRE’s total revenues for 2025 stands at $15.86 billion, indicating year-over-year growth of 20.3%.

The company’s (three to five years) earnings growth rate is 7.9%. It delivered an average earnings surprise of 0.56% in the last four quarters.

Sempra’s Return to Shareholders

Sempra Energy has been increasing shareholder value through dividend payments. Currently, the company’s quarterly dividend is 64.5 cents per share, resulting in an annualized dividend of $2.58. The company’s current dividend yield is 3.16%, better than the Zacks S&P 500 Composite’s 1.15%.

SRE’s Systematic Investment

SRE is steadily advancing its infrastructure development through systematic investments, with $13 billion allocated for 2025. Over the 2025-2029 period, the company plans to deploy $56 billion in capital, including $22.4 billion for Sempra California, $29.1 billion for Sempra Texas Utilities and $4 billion for Sempra Infrastructure.

These initiatives are expected to fortify the company’s infrastructure and enhance its ability to deliver safe, reliable and efficient electricity to customers.

Overview of SRE’s Debt Structure

Currently, SRE’s total debt to capital is 50.19%, better than the industry’s average of 51.09%.

The times interest earned ratio (TIE) at the end of the second quarter of 2025 was 2.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

SRE Stock Price Performance

In the past six months, SRE shares have risen 14.3% compared with the industry’s growth of 8.7%.

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Other Stocks to Consider

A few other top-ranked stocks related to the same sector are Atmos Energy Corp. (ATO - Free Report) , NiSource, Inc. (NI - Free Report) and Fortis (FTS - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ATO’s long-term earnings growth rate is 7.3%. The Zacks Consensus Estimate for fiscal 2025 EPS stands at $7.33, which suggests a year-over-year rise of 7.3%.

NI’s long-term earnings growth rate is 7.9%. The consensus estimate for 2025 EPS is pegged at $1.88, which indicates a year-over-year improvement of 7.4%.  

FTS’ long-term earnings growth rate is 5.1%. The consensus mark for 2025 EPS stands at $2.50, which calls for a year-over-year increase of 4.6%.


See More Zacks Research for These Tickers


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NiSource, Inc (NI) - free report >>

Sempra Energy (SRE) - free report >>

Atmos Energy Corporation (ATO) - free report >>

Fortis (FTS) - free report >>

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