Updated 3/26
Spire Inc. doesn’t usually make waves in the financial headlines, but for dividend investors, this quiet utility company offers something far more appealing—consistency. Headquartered in St. Louis, Spire serves over 1.7 million natural gas customers across Missouri, Alabama, and Mississippi. In addition to its regulated utility operations, the company also operates in natural gas storage and distribution through its midstream segment.
With more than 160 years of history under its belt, Spire has leaned into the traits that income-focused investors love most: stable cash flow, a predictable business model, and a dependable dividend. While the market gets caught up in growth hype, companies like Spire go about their business, quietly rewarding shareholders quarter after quarter.
Recent Events
Over the past year, Spire has been rebuilding momentum. The stock is up nearly 26% over the last 12 months, outpacing the broader market. That kind of performance is rare for a utility, especially one that’s been through a regulatory dust-up not too long ago. But Spire appears to have weathered the storm, focusing on what it does best—delivering natural gas and maintaining steady earnings.
Revenue in the most recent quarter came in lower year-over-year, down about 11.6%, but profits held up well. Earnings per share over the past year clocked in at $4.01, a sign that the company is managing its margins effectively even in a softer revenue environment. The dip in sales isn’t alarming—it’s likely tied to seasonal usage and macro factors that tend to fluctuate.
Importantly, the company has been steering more of its capital into regulated operations. That shift makes earnings more predictable, which is great news for dividend investors looking for stability over surprises.
Key Dividend Metrics
📈 Forward Dividend Yield: 4.06%
💸 Annual Dividend: $3.14 per share
🔁 5-Year Average Yield: 4.15%
🧮 Payout Ratio: 76.06%
📅 Next Dividend Payment: April 2, 2025
⛔ Ex-Dividend Date: March 11, 2025
📊 Dividend Growth Streak: 20 years and counting
Dividend Overview
Spire’s dividend checks a lot of the right boxes for income investors. With a forward yield just above 4%, it’s not chasing yield for attention, but it’s also comfortably ahead of the market average. That tells you something about its stability—and its value.
The latest quarterly payout sits at $0.785 per share, continuing a two-decade-long pattern of uninterrupted growth. It’s not flashy, but it’s dependable. For investors looking to build income over time, that’s the kind of track record you want to see.
Dividend Growth and Safety
Spire has increased its dividend for 20 straight years. That kind of consistency doesn’t happen by accident. It’s the result of careful financial management and a business model that doesn’t swing wildly with economic cycles.
The company’s payout ratio is about 76%, which is on the higher side, but still within the safe range for utilities. Utilities often operate with high payout ratios because their earnings are relatively predictable, and their capital needs are well understood by regulators and investors alike.
One thing to keep an eye on is free cash flow. Spire’s levered free cash flow is currently in the red—around negative $88.7 million over the past year. That’s mainly due to the company investing heavily in infrastructure upgrades. For a utility, this isn’t unusual. These capital projects often qualify for future rate recovery, meaning the money being spent today comes back in future revenue.
Chart Analysis
Price Action and Trend Behavior
The chart for Spire Inc. (SR) shows a clear trend development over the past several months. After a steady rise from its lows around June 2024, the stock entered a period of consolidation in mid-September before breaking out strongly into an uptrend toward year-end. The most notable surge came between December and early January, with a sharp move higher supported by increased volume and bullish candles. That surge lost steam briefly, followed by a dip that retested the 50-day moving average (orange line) before price bounced and continued its upward push.
Price action over the last few weeks has been quite orderly. There’s a stair-step pattern of higher highs and higher lows forming, which is often a healthy sign of sustained buying interest rather than speculative chasing.
Moving Averages
The 50-day simple moving average is trending upward with strength, acting as dynamic support several times—most recently in early March. This shorter-term average has now created a clear gap above the 200-day moving average (blue line), which has also been trending up at a more gradual pace. That crossover that occurred a few months ago was a solid technical signal of a shift toward a long-term bullish phase.
The current price is comfortably above both moving averages, suggesting strong momentum remains intact. The 200-day line is playing catch-up, which typically reflects longer-term investor confidence building steadily over time.
Volume Profile
Volume has been mostly stable, with a few standout sessions of high green bars indicating strong accumulation days—particularly noticeable in early January and again in early March. Those spikes tend to happen when institutions step in, often giving added weight to a breakout or retest holding.
There’s a balanced mix of red and green bars in quieter periods, showing normal ebb and flow rather than erratic or panic selling. Notably, there’s been no abnormal selling pressure during minor pullbacks—this kind of volume pattern is usually seen in healthy, sustained uptrends.
RSI Momentum
The Relative Strength Index (RSI) is currently sitting around 38, slightly below the midpoint of the range. That’s a bit surprising given the price strength, and it may indicate that momentum has cooled off slightly or that the stock is pausing to digest its recent gains. It’s not yet in oversold territory, but it is closer to the bottom than the top, which could leave some room for upward movement if buying returns.
RSI had been much higher in January when the stock was surging, showing classic signs of a near-term top back then. Since then, RSI has drifted lower in a slow, controlled way—matching the stock’s digestion phase and reset.
Candle Action
The last five candles are showing a relatively tight range, with smaller real bodies and some upper wicks. That combination typically indicates a tug-of-war between buyers and sellers. The presence of upper wicks hints at selling pressure or hesitation at higher levels, but the fact that prices haven’t pulled back sharply shows there’s still underlying demand.
There hasn’t been a decisive bearish candle in the recent stretch, and most of the closes remain above the 50-day moving average. The market seems to be testing whether it has the strength for another leg higher or if it needs a deeper pullback first.
Analyst Ratings
Spire Inc. (SR) has been on the radar of several analysts recently, with opinions split depending on the lens through which the company is being viewed. 📉 Earlier this month, one notable downgrade came through with a shift from “hold” to “sell,” reflecting growing caution over Spire’s near-term prospects. The downgrade seemed to align with concerns surrounding its recent dip in year-over-year revenue and negative free cash flow, which may be raising red flags about operational efficiency or macroeconomic sensitivity.
On the flip side, not everyone is stepping back. 🔼 A recent upgrade to a “strong buy” from another firm showed continued faith in Spire’s longer-term outlook. That move came with a sense of optimism around its improving cash generation from core operations and a more favorable regulatory backdrop. Some analysts appear to believe the stock has turned a corner, especially after its solid rebound off lows earlier in the year.
📊 One well-followed investment bank also raised its price target for Spire from $75 to $78 while maintaining a neutral stance. That suggests they see upside, but nothing that breaks from market performance expectations. The lift in the target may be a nod to stable utility demand and the stock’s solid technical structure.
💰 As of now, the consensus 12-month price target for Spire hovers around $76. Analysts’ projections stretch from a cautious low of $65 all the way to a more bullish high of $85. With the current share price near the average estimate, it looks like the stock might be fairly valued in the eyes of many on the Street.
Overall, recent ratings show a balance of skepticism and support. While the downgrade adds a layer of caution, the upgrade and target hikes show not all confidence is lost. The market seems to be waiting for Spire to prove it can maintain stability while improving profitability.
Earning Report Summary
Earnings at a Glance
Spire kicked off fiscal 2025 with results that were a bit softer than the same time last year, but not entirely unexpected given some of the challenges it’s been navigating. Adjusted earnings per share came in at $1.34 for the quarter, which is down from $1.47 a year ago. A drop, yes—but it’s worth noting this was impacted by a few one-off items, like weaker results from the gas marketing side of the business and some weather that didn’t quite cooperate.
Despite the revenue decline—about 11.6% year-over-year—the core utility business still held up relatively well. Spire’s operating margin stayed strong at nearly 23%, which shows the company is managing costs efficiently even when revenue is down. That’s the kind of operational discipline that income-focused investors tend to appreciate.
Capital Investments and Strategy
One thing Spire is clearly not doing is sitting still. The company poured $260 million into infrastructure upgrades during the quarter, part of a broader $790 million investment plan for the year. Most of that is going into improving and expanding their natural gas distribution systems. These projects might not deliver immediate returns, but they’re crucial for the company’s long-term growth and reliability.
From a regulatory perspective, Spire has been active. They’ve filed for a rate increase totaling just under $290 million, with decisions expected later this year. In Missouri, they’re also asking for a $19 million boost related to infrastructure updates. These filings are essential if Spire wants to continue upgrading systems while keeping earnings on track.
Leadership and Outlook
There was also a bit of news on the leadership front. CEO Steve Lindsey, who had been on a brief leave, is now back at the helm. That kind of leadership stability is important, especially during periods of heavy investment and regulatory activity.
Looking ahead, Spire hasn’t changed its long-term goals. The company is still aiming for 5% to 7% annual EPS growth and reaffirmed its guidance for fiscal 2025, projecting earnings between $4.40 and $4.60 per share.
Yes, there were a few setbacks in the quarter, but the bigger picture remains intact. Spire is clearly focused on long-term reliability, smart infrastructure investments, and steady earnings growth—all things that tend to matter more than short-term noise for long-term dividend investors.
Financial Health and Stability
Spire’s financial position is solid, although it carries a fair amount of debt—around $4.9 billion. Its debt-to-equity ratio is about 148%, which is definitely on the higher end. However, for a regulated utility, that level of leverage is somewhat expected. These companies often have steady enough income streams to carry more debt than businesses in other sectors.
Cash reserves are light, with just $11.5 million on hand, and the current ratio is a tight 0.50. That means there’s not much cushion for unexpected short-term liabilities. But again, utilities tend to operate on long-term planning cycles, and Spire’s operating cash flow of $923.5 million shows the business is generating the cash it needs to support operations and dividends.
Return on equity stands at 7.77%, and return on assets is 2.90%. Those numbers might not look exciting on their own, but for a company in a highly capital-intensive sector, they reflect stable, consistent performance.
Valuation and Stock Performance
At its current share price around $77, Spire trades at a forward price-to-earnings ratio of about 17. That’s right in the range of where you’d expect a healthy utility to be—modestly valued with predictable earnings. It’s not cheap, but it’s not stretched either.
The price-to-book ratio is 1.47, slightly above the average for utilities but still within a fair range. Investors are clearly willing to pay a bit of a premium for the reliability Spire offers.
Spire shares have rebounded strongly from last year’s lows near $57, and recently touched $78.83, close to their 52-week high. The stock is trading comfortably above both its 50-day and 200-day moving averages, a sign of sustained investor confidence. It may not be flashy, but it’s showing strong footing technically.
Risks and Considerations
While Spire brings plenty to like, there are some risks worth keeping in mind. For starters, the debt load is heavy. Rising interest rates could make refinancing more expensive over time, squeezing margins and limiting financial flexibility.
There’s also regulatory risk. Spire’s earnings are tightly linked to decisions made by state utility commissions. If regulators push back on rate increases or challenge the company’s return assumptions, earnings could take a hit.
Free cash flow is another area to watch. The current negative number reflects infrastructure investment, but if capital costs continue to rise or earnings fall short, the pressure on cash could mount.
Lastly, natural gas demand is seasonal. Warm winters can lead to lower usage, which affects revenue. It’s a manageable risk, but one that comes with the territory in this sector.
Final Thoughts
Spire isn’t the kind of stock that grabs headlines—but for income-focused investors, that’s part of the appeal. With a dividend yield just over 4%, a 20-year track record of dividend growth, and a stable regulated business, it offers a dependable stream of income.
The financials aren’t perfect—there’s a lot of debt and tight liquidity—but the underlying business continues to generate strong operating cash flow. That’s the engine that keeps the dividend going, and for now, it looks like that engine is running smoothly.
For investors who prefer slow and steady over fast and flashy, Spire might just be the kind of utility that earns a long-term place in an income portfolio.