Here's Why You Must Add OGE Energy Stock to Your Portfolio Now

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OGE Energy Corp. OGE, with its rising earnings estimates, strategic investments, better debt management and strong dividend history, offers a great investment opportunity in the Zacks Utility Electric Power industry.

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

OGE’s Growth Projections

The Zacks Consensus Estimate for OGE Energy’s 2025 earnings per share (EPS) has increased 0.4% to $2.27 per share in the past 60 days.

The Zacks Consensus Estimate for OGE’s 2025 revenues stands at $3.01 billion, which indicates growth of 0.8% from the 2024 reported figure.

The company’s long-term (three to five years) earnings growth rate is pegged at 6.1%.

Debt Position of OGE

Currently, OGE’s total debt to capital is 54.34%, better than the industry’s average of 60.82%.

OGE Energy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2024 was 2.9. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.

Dividend History of OGE

OGE Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 42.125 cents per share, resulting in an annualized dividend of $1.685. OGE’s current dividend yield is 3.8%, better than the Zacks S&P 500 Composite's average of 1.27%.

OGE’s Systematic Investments

OGE Energy is making significant investments in infrastructure to serve its customers efficiently. Over the 2025-2029 period, the company intends to invest $6.25 billion. Its capital investments aim to maintain and improve the safety, resiliency and reliability of its distribution and transmission grids, as well as its generation fleet.

OGE Stock Price Performance

In the past three months, OGE shares have risen 7.4% compared with the industry’s growth of 2.8%.

Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are CenterPoint Energy Inc. CNP, NiSource Inc. NI and Ameren Corporation AEE, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNP’s long-term earnings growth rate is 7.5%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which indicates a year-over-year improvement of 8%.

NI’s long-term earnings growth rate is 8.2%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.91, which suggests a year-over-year rise of 9.1%.

AEE’s long-term earnings growth rate is 6.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.94, which calls for a year-over-year improvement of 6.7%.

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Ameren Corporation (AEE) : Free Stock Analysis Report

NiSource, Inc (NI) : Free Stock Analysis Report

OGE Energy Corporation (OGE) : Free Stock Analysis Report

CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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