This article first appeared on GuruFocus.
Sempra (NYSE:SRE) Declares Quarterly Dividend of $0.66 Per Share, Extending a Decades-Long Payout Streak
Sempra (NYSE:SRE) recently announced a total dividend of $0.66 per share, with the ex-dividend date set for 2026-09-24. This includes a $0.66 per share cash dividend payable on 2026-10-15. For investors, the ex-dividend date is the cutoff for eligibility: shareholders who own SRE stock before that date will receive the payment, while those who buy on or after it will not. As investors look forward to this upcoming payment, the spotlight also shines on the company’s dividend history, yield, and growth rates. Using data from GuruFocus, let’s look into Sempra’s dividend performance and assess its sustainability.
What Does Sempra Do?
Sempra is a US energy holding company whose subsidiaries invest in and operate regulated utilities and energy infrastructure. Its largest business, Southern California Gas Company, distributes natural gas across Southern California, while San Diego Gas & Electric provides electricity and natural gas service in San Diego County. Sempra also owns a majority stake in Oncor Electric Delivery, a regulated transmission and distribution utility serving much of Texas. Through Sempra Infrastructure, the company develops and operates liquefied natural gas export terminals, natural gas pipelines, and power generation and energy networks in Mexico, including the Cameron LNG facility in Louisiana and the Energia Costa Azul terminal in Baja California. Revenue comes mainly from regulated utility rates and long-term contracted energy infrastructure, with customers including residential, commercial, and industrial ratepayers and global LNG buyers.
Sempra’s Dividend Analysis · us.finance.gurufocus
A Glimpse at Sempra’s Dividend History
Sempra has maintained a consistent dividend payment record since 1984, distributing dividends on a quarterly basis. That is more than four decades of uninterrupted payments, a track record few companies in the utility sector can match. For value investors, this kind of consistency signals disciplined capital allocation and a business model built on predictable cash flows.
Sempra has increased its dividend each year since 2000. The stock is thus listed as a dividend aristocrat, an honor given to companies that have increased their dividend each year for at least the past 26 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Sempra’s Dividend Analysis · us.finance.gurufocus
Breaking Down Sempra’s Dividend Yield and Growth
As of today, Sempra currently has a 12-month trailing dividend yield of 3.24% and a 12-month forward dividend yield of 3.27%. The trailing yield reflects dividends actually paid over the past year, while the forward yield is based on the expected payout for the next twelve months. Because the forward yield sits slightly above the trailing figure, the market anticipates an increase in dividend payments over the next 12 months.
Over the past three years, Sempra’s annual dividend growth rate was 4.10%. Extended to a five-year horizon, this rate increased to 4.20% per year. And over the past decade, Sempra’s annual dividends per share growth rate stands at 6.40%. The pattern here is worth noting: growth has moderated in recent years compared with the longer ten-year average, which may reflect a more mature phase of expansion or a deliberate shift toward a more conservative payout posture.
Based on Sempra’s dividend yield and five-year growth rate, the 5-year yield on cost of Sempra stock as of today is approximately 3.98%. Yield on cost estimates the effective income return an investor could earn after five years, assuming the dividend continues compounding at its recent pace.
Sempra’s Dividend Analysis · us.finance.gurufocus
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company’s payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that th
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