Key Takeaways
📈 Evergy offers a forward dividend yield of 3.86% with a steady growth rate of 2.69%, supported by a payout ratio under 70% and a strong history of consistent quarterly distributions.
💵 Operating cash flow remains stable at nearly $2 billion, but free cash flow is negative due to ongoing capital investments in infrastructure and renewable projects.
🔍 Analysts have recently upgraded the stock, with a consensus price target of $71.88 and positive sentiment driven by regulatory clarity and long-term earnings visibility.
📊 Fourth-quarter earnings showed year-over-year improvement, and leadership reaffirmed full-year guidance, emphasizing ongoing investments in grid modernization and clean energy.
Last Update 5/4/25
Evergy, Inc. (EVRG) is a regulated utility serving approximately 1.7 million customers across Kansas and Missouri, with a business model focused on grid reliability, infrastructure investment, and a growing renewable energy mix. The company has delivered steady earnings and dividend performance, supported by strong relationships with state regulators and a capital strategy that emphasizes long-term stability. Over the past year, the stock has risen significantly, trading near its 52-week high, with continued momentum above key moving averages.
The leadership team, led by CEO David Campbell, has maintained a disciplined approach to expenses and capital deployment, balancing investment needs with shareholder returns. With a forward dividend yield close to 4 percent, consistent operating cash flow, and reaffirmed earnings guidance through 2025, Evergy continues to position itself as a dependable holding backed by solid fundamentals and clear strategic direction.
Recent Events
Evergy’s stock recently closed at $69.25, right near its 52-week high of $70.30. That’s a pretty strong recovery from the low of $52.10 seen earlier in the year. The rebound lines up with falling Treasury yields, which tend to give a lift to yield-oriented stocks like utilities.
In February, the company posted solid earnings for the fourth quarter, reporting a 34.8% year-over-year increase in net income. Over the trailing twelve months, Evergy generated $873.5 million in net earnings and carries a trailing price-to-earnings ratio of 18.27. Looking ahead, analysts expect a forward P/E of 17.15, hinting at continued growth and cost discipline.
Still, there are some pressure points worth noting. The company’s current ratio is low at 0.50, and its total debt stands at a hefty $14.22 billion. This kind of leverage isn’t unusual in the utility sector—where capital projects are always in motion—but it does mean cash flow has to be tightly managed. Right now, levered free cash flow is in the red at -$679 million. Again, not uncommon for a utility, but a reminder that dividend health is closely tied to operational cash flow, which is currently sitting at $1.98 billion.
Key Dividend Metrics 📊💵🔍
- 💰 Forward Dividend Yield: 3.86%
- 📆 Dividend Frequency: Quarterly (last paid March 21, 2025)
- 📈 5-Year Average Yield: 3.88%
- 🧮 Payout Ratio: 68.47%
- 💡 1-Year Dividend Growth: 2.69%
- 🧱 Dividend Safety (based on earnings): Moderate and steady
- 🔄 Consistency: Strong track record, no dividend cuts post-merger
These numbers tell a straightforward story. Evergy’s dividend may not be the fastest growing, but it’s dependable, well-supported by earnings, and competitive within the utility sector.
Dividend Overview
Evergy is currently paying out an annual dividend of $2.67 per share, which gives it a yield of 3.86%. That’s not just solid—it’s higher than the average yield on the broader market and right in line with what many dividend investors look for in a defensive holding. It’s the kind of yield that gives portfolios ballast without swinging wildly with the broader market.
The payout ratio, sitting just under 69%, shows that Evergy is using a sensible portion of its earnings to return capital to shareholders while keeping some cushion for reinvestment and debt service. It’s not unusual for utilities to operate with higher payout ratios than other sectors, given their more stable revenue and profit profiles.
And while the dividend isn’t skyrocketing year to year, it’s been rising at a manageable clip. Evergy doesn’t aim to impress with growth spurts. Instead, it provides a consistent income stream that investors can count on quarter after quarter.
Dividend Growth and Safety
Over the past year, Evergy raised its dividend by about 2.69%. That’s not going to make headlines, but it is in line with what you’d expect from a regulated utility with a conservative approach to capital allocation. Dividend growth has been steady, and there’s been no hint of cuts since the company’s current form came into being.
The key metric to watch going forward is how well cash flow supports the dividend. While earnings cover the payout, free cash flow is currently negative. That’s a red flag in some industries, but not unusual here, given the large investments required to maintain and upgrade grid infrastructure. What matters is that operating cash flow remains strong—and at $1.98 billion, it’s providing a decent cushion.
Return on equity is currently at 9.01%, which is healthy for a utility and shows Evergy is managing capital effectively. Also, with a beta of just 0.50, the stock doesn’t see the kind of volatility that might spook long-term income investors. It stays in its lane, delivering reliable performance.
Institutional investors seem to agree—over 89% of Evergy’s shares are held by large funds. That level of backing often points to confidence in management and the long-term viability of the dividend.
What could potentially shift things? Regulatory changes, interest rate shifts, or a spike in capital expenses could all tighten the company’s flexibility. But at the moment, the picture looks relatively balanced. Evergy is walking the line between reinvesting for future growth and maintaining a stable dividend that continues to reward shareholders.
For those building a portfolio around income, Evergy brings that calm, steady presence—something that’s often underrated, but never unwelcome.
Cash Flow Statement
Evergy’s cash flow statement over the trailing twelve months shows a company continuing to invest heavily in infrastructure while managing to maintain positive operational strength. Operating cash flow came in at nearly $1.98 billion, holding steady from the prior year and up from $1.35 billion in 2021. This consistency reflects the predictable nature of regulated utility earnings, even as capital demands rise. The company’s ability to generate steady operating inflows helps support its dividend, even as free cash flow remains in negative territory.
On the other side of the ledger, investing cash flow continues to be a significant drain, with $2.26 billion going out—largely for capital expenditures that totaled $2.34 billion. This is consistent with the prior years and reflects Evergy’s ongoing grid modernization and renewable investments. Financing activities were mildly positive at $280 million, buoyed by $1.47 billion in new debt issuances, offset by $887 million in debt repayments. While negative free cash flow of $353 million isn’t ideal, it’s not unexpected given the company’s capex-heavy model. The cash position at the end of the period rose slightly to $29.9 million, signaling tight but manageable liquidity.
Analyst Ratings
Evergy has recently caught more attention from the analyst community, with a few notable upgrades that reflect growing optimism around the stock. 🟢 UBS lifted its rating on Evergy from neutral to buy, boosting the price target from $68 to $78. The upgrade was tied to improving confidence in the regulatory landscape in Missouri and a belief that valuation concerns tied to Kansas operations may be overdone.
Barclays also nudged its price target upward, increasing it from $72 to $73 while keeping an overweight stance. 🔼 The firm pointed to the utility’s solid operational footing and a more favorable macro backdrop, especially as interest rate pressures appear to be cooling. Meanwhile, analysts at Ladenburg Thalmann went a step further, upgrading the stock to a strong buy, citing long-term upside potential backed by a disciplined capital plan and predictable earnings.
Not all recent updates were glowing, though. ⚠️ Moody’s downgraded the credit rating of Evergy Missouri West to Baa3. That move reflected concerns around elevated capital spending and a growing debt load—issues that could put pressure on cash flow in that specific business unit. Importantly, this downgrade didn’t impact Evergy Inc. directly but is worth watching.
As of now, the analyst consensus remains positive, with a buy rating and an average price target sitting around $71.88. 📈 That implies a modest upside from current levels and signals continued confidence in Evergy’s ability to navigate its regulatory and financial obligations while delivering consistent shareholder value.
Earnings Report Summary
A Solid Close to the Year with Some Challenges
Evergy wrapped up the final quarter of 2024 with a decent earnings performance, although it didn’t quite hit the mark analysts were hoping for. The company posted adjusted earnings of $0.35 per share, up from $0.27 in the same quarter last year. The improvement was driven by stronger demand in certain areas and the benefit of new retail rates. Still, mild winter weather and higher interest and operating expenses weighed on the results and kept them slightly below expectations.
Total revenue came in at $1.26 billion for the quarter, which was a noticeable bump from $1.19 billion the year prior. Full-year adjusted earnings landed at $3.81 per share, boosted by consistent demand and regulatory support through investments backed by the Federal Energy Regulatory Commission. That combination helped offset some of the cost pressures seen throughout the year.
Managing Costs While Looking Ahead
Costs are always a concern in this capital-intensive sector, and Evergy saw them creep up again. Operating and maintenance expenses rose nearly 2% year-over-year, while interest expenses climbed around 7%, totaling over $563 million. Even with those pressures, the company ended the year in a stable financial position, with $22 million in cash on hand as of the end of December.
What really stood out, though, was management’s confidence in what’s coming next. Evergy reaffirmed its earnings guidance for 2025, targeting adjusted earnings per share between $3.92 and $4.12. They’re also sticking to their long-term goal of growing earnings at a steady 4 to 6 percent annually through 2029. That kind of consistency is exactly what long-term dividend investors tend to like.
A Focus on the Future
CEO David Campbell talked about the company’s continued push into grid modernization and renewable energy. These aren’t just buzzwords—Evergy is investing heavily in building out infrastructure to meet rising energy demand and support economic growth across its service areas. The long-term strategy is centered on reliability, cleaner energy, and keeping up with the region’s evolving needs.
In short, Evergy’s fourth quarter had its ups and downs, but the bigger picture remains intact. The company is balancing the need for ongoing investment with a disciplined approach to expenses and a steady hand on earnings growth. For investors looking for consistency in a utility, the message from leadership was clear: the plan is in place, and they’re sticking to it.
Chart Analysis
Steady Climb With Momentum Intact
EVRG has shown a consistent uptrend over the past year, and that story is clearly reflected in this chart. After starting last May around the $51 mark, the stock has moved steadily higher, recently brushing up near $70. What stands out is the clean, sustained climb above both the 50-day and 200-day moving averages. The 50-day moving average (red line) stayed firmly above the 200-day (blue line) from mid-year onward—a bullish signal that suggests strong medium-term momentum.
The price action has respected the 50-day MA as a support level multiple times, especially during brief dips in November, January, and March. Each time, buyers stepped in, pushing the stock higher. The move has been orderly, not overly parabolic, which tends to point to healthy participation and controlled buying interest.
Volume and RSI Tell a Balanced Story
Volume over the year has stayed relatively consistent, with a few noticeable spikes in late July, mid-December, and late March. These surges in activity generally aligned with upward price movements, hinting at accumulation rather than panic-driven selling.
Looking at the RSI at the bottom of the chart, the stock has flirted with overbought territory (above 70) several times, most notably in late July, early December, and recently in April. Even so, these periods were brief, and RSI typically cooled off without dipping too far into oversold territory. The RSI has mostly ranged between 40 and 70, a sign of steady strength without excessive froth.
Final Notes on the Current Setup
Over the past five months, EVRG has not only maintained its uptrend but done so while forming higher highs and higher lows—one of the simplest, clearest ways to define a strong chart. The most recent candles suggest a slight consolidation near the highs, with no obvious signs of exhaustion or breakdown. This could be a pause before continuation, as price and volume remain constructive.
Overall, the chart reflects a name in control of its direction, supported by consistent demand and disciplined trading behavior. The trend has been upward, the pullbacks have been orderly, and the broader structure remains intact.
Management Team
Evergy’s leadership has remained steady and focused, steering the company with a long-term view centered on operational efficiency, regulatory alignment, and clean energy transition. At the helm is David Campbell, who has been CEO since 2020. His background includes senior roles at both power generation and infrastructure-focused companies, and that experience has shaped Evergy’s current strategy—particularly its commitment to balancing grid modernization with ratepayer affordability.
Under Campbell’s leadership, the management team has prioritized disciplined capital allocation. That includes streamlining operational processes, managing expenses, and directing capital spending toward infrastructure that will keep the grid reliable while integrating more renewable energy sources. The tone from the top is clear: stability and long-term performance matter more than short-term market moves.
The team has also built strong working relationships with regulators in Kansas and Missouri, which is critical in this industry. Their ability to navigate rate cases and implement multi-year capital plans with regulatory approval has played a central role in the company’s consistent earnings and dividend performance. It’s not flashy, but it’s effective—and that predictability has helped build confidence among investors who value income and capital preservation.
Valuation and Stock Performance
Over the past 12 months, EVRG has delivered a strong stock performance, climbing from the low $50s to near $70. The rise hasn’t been abrupt or speculative—it’s been supported by earnings growth, a favorable regulatory backdrop, and improving investor sentiment toward utilities as inflation fears have eased. The broader utility sector has benefited from the possibility of interest rate stabilization, and Evergy has been one of the quiet winners in that shift.
Looking at valuation, EVRG trades with a forward price-to-earnings ratio around 17x. That’s slightly below the broader utility sector’s historical average, which often lands in the high teens to low twenties depending on the rate cycle. It suggests there’s no runaway premium built into the current price, despite the stock’s recent gains. In other words, Evergy is being valued fairly based on its earnings outlook and consistency.
The price-to-book ratio sits near 1.6, and price-to-sales is around 2.7. These levels are right in the wheelhouse for a stable, rate-regulated utility. From a cash flow standpoint, Evergy’s enterprise value to EBITDA ratio is just over 11, another reasonable figure that reflects the capital-intensive nature of the business. Nothing jumps out as overvalued, but it’s also not trading at a deep discount. It’s in a middle ground, offering a balance of income and modest upside tied to execution.
The share price also tracks well against moving averages. It’s been consistently trading above its 200-day and 50-day lines, which reflects both underlying strength and investor confidence. The stock’s beta of 0.50 shows it’s less volatile than the market, an attractive feature during uncertain economic periods. For those who prioritize steadiness over sharp price swings, Evergy continues to deliver.
Risks and Considerations
As with any utility, Evergy isn’t immune to external pressures. One of the more immediate concerns is interest rates. Although rate hikes may be pausing, the company still carries over $14 billion in total debt. Rising or persistently high rates could increase borrowing costs and pressure cash flow, especially since Evergy has a multi-year capital plan that will require consistent financing.
There’s also the regulatory angle. While the company currently has good standing in both Kansas and Missouri, shifts in political leadership or public opinion could affect how future rate cases are handled. The cost of transitioning to renewable energy sources, grid upgrades, and environmental mandates can all come with scrutiny. If regulators decide to disallow certain expenses or delay rate approvals, it could squeeze margins.
Operational risk is another factor. Severe weather events, supply chain delays for infrastructure projects, or cost overruns can affect timelines and budgets. And while the company has a solid track record, no utility is completely insulated from unexpected disruptions—especially as climate risks continue to evolve.
Additionally, Evergy’s free cash flow has been negative in recent periods, which is common in this industry due to heavy capital spending. Still, it’s a signal that the company is reliant on debt markets and operational earnings to maintain dividend stability. If cash flow were to weaken meaningfully or capital costs rise sharply, the margin for error could narrow.
Finally, from a market standpoint, utilities can fall out of favor during periods of strong economic growth, when investors rotate toward higher-growth sectors. Evergy’s appeal is in its consistency, not its ability to deliver double-digit returns year after year. That means during bull markets, the stock may underperform more cyclical names.
Final Thoughts
Evergy stands out as a stable and well-managed name in the utility space, offering a blend of consistent income and modest growth potential. The management team has been disciplined, especially when it comes to capital spending and regulatory strategy. While not immune to interest rate or regulatory risks, the company’s long-term plan is focused and realistic.
With a forward yield near 4 percent and an earnings outlook that’s backed by strong regional demand and infrastructure investment, Evergy remains positioned as a steady contributor. It’s not a rapid grower, and that’s perfectly fine. The story here is one of predictability, capital discipline, and a clear path forward—exactly what investors who value steady returns tend to appreciate.
Whether navigating rising costs, funding major grid investments, or maintaining strong relationships with regulators, Evergy has shown a consistent ability to adapt without losing sight of its core mission. That combination of clarity and execution gives it a durable place in a well-rounded portfolio.