Sempra: Why It Remains A Buy Now

Sempra, a utility company boasting a 15-year dividend growth streak, is highlighted as a compelling investment opportunity. The company's management projects 7-9% annual adjusted EPS growth through 2029, and the stock is currently trading 9% below its fair value estimate. This valuation, combined with its growth trajectory, positions Sempra for potential 13% total returns by June 2026 and over 10% annual total returns through 2030.

Analysis

Sempra (SRE), a utility company, is presented as an investment with strong fundamentals, underscored by a 15-year streak of dividend growth. The analysis highlights management's confidence, reflected in a forward-looking guidance that projects 7% to 9% annual adjusted EPS growth through 2029. From a valuation perspective, the stock is noted to be trading at a 9% discount to the author's fair value estimate. This combination of consistent capital returns, robust earnings growth outlook, and perceived undervaluation forms the basis for a projection of 13% total returns by mid-2026 and annual total returns exceeding 10% through 2030, positioning Sempra as a candidate for both income and growth-oriented investors.

Key Decisions for Investors

• Given the reported 9% valuation discount and strong EPS growth forecast, investors could consider current levels an attractive entry point for a long-term position.
• For income-focused portfolios, the 15-year dividend growth history, supported by management's robust earnings projections, reinforces the stock's potential as a reliable and growing income source.
• Investors should closely monitor Sempra’s quarterly performance against its ambitious 7-9% annual EPS growth guidance, as the achievement of this target is fundamental to the long-term total return thesis.