KeyBanc Capital Markets has downgraded Portland General Electric (NYSE: POR) from Overweight to Sector Weight, citing jurisdictional challenges that could impact the company’s regulatory environment and growth prospects.
Despite a 16.4% increase in industrial load growth, driven by high-tech and data center demand, the company faces concerns tied to pending wildfire legislation and the creation of a catastrophic wildfire fund—both of which could affect long-term cost structures.
Residential load declined 0.8% quarter over quarter, a result of enhanced energy efficiency programs that have led to lower usage per customer, putting modest pressure on top-line revenue growth.
Portland General Electric reaffirmed its 2025 adjusted earnings guidance of \$3.13 to \$3.33 per diluted share and continues to project long-term earnings and dividend growth in the range of 5% to 7%. However, with growing regulatory uncertainty, KeyBanc believes risk-reward is now more balanced.
💵 Dividend Fundamentals
Portland General Electric currently offers a forward dividend yield of 4.71%, paying an annual \$2.02 per share. The payout ratio sits at 69.93%, which is in line with the company’s long-term target of distributing 60% to 70% of earnings. The company maintains a solid track record of dividend growth, averaging 5.5% over the past five years, making it a steady income generator even amid policy-driven pressures.