Consistent Moneymakers: Why Evergy, Sempra, and Philip Morris Are Top Yield Plays

In a market where yield-hungry investors are searching for reliable income streams, three companies—Evergy (EVRG), Sempra (SRE), and Philip Morris (PM)—stand out for their decades-long track records of dividend consistency. Each offers unique strengths: Evergy’s unmatched dividend growth streak, Sempra’s utility-sector resilience, and Philip Morris’ high-yield allure. Let’s dissect their profiles to determine which could be the best fit for your portfolio.

Evergy (EVRG): The Dividend Achiever with a 22-Year Streak

Evergy’s 3.9% dividend yield and 22-year streak of annual dividend increases make it a standout utility stock. Since 2003, the company has raised payouts every year, a feat highlighted by its consecutive annual dividend increases (CADI) of 22 years. Key metrics:
- Payout Ratio: 48.4%, signaling healthy retained earnings to fund growth.
- Growth Consistency: Dividends rose from $0.935 per share in 2018 to $2.595 in 2024, averaging ~6.5% annual growth over the past five years.
- Future Outlook: Evergy’s $17.5 billion capital investment plan through 2029 supports sustained earnings growth, ensuring dividends remain a priority.

Sempra (SRE): Steady Growth in the Energy Sector

Sempra’s 2.84% dividend yield and 15-year dividend growth streak position it as a solid choice for investors seeking balance between yield and stability. Highlights:
- Growth Metrics:
- 1-year CAGR: 3.81% (2023–2024).
- 10-year CAGR: 6.5%, reflecting its role as a leader in regulated utilities and clean energy.
- Safety: Payout ratio of 52.5% leaves ample room for future increases.
- Ex-Dividend Timing: Investors purchasing shares before December 5, 2024, locked in the next $0.62 quarterly payout.

Philip Morris (PM): High Yield, But Growth Challenges

Philip Morris dominates with a 5.07% forward dividend yield, but its path forward is less certain. Key insights:
- Dividend Streak: 16 consecutive years of increases, yet 2025 projections show flat growth ($5.20 annual payout, 0% increase vs. 2024).
- Risk Factors:
- Payout Ratio: 75.2%, pushing near the caution threshold.
- Industry Dynamics: The tobacco sector’s regulatory and health risks could pressure earnings.
- Safety Net: A beta of 0.6 (vs. the S&P 500) suggests lower volatility, but yield hunters must weigh its dependency on a shrinking product category.

Conclusion: Which Dividend Champion Wins?

Each company offers distinct advantages for yield-focused investors:

1. Evergy (EVRG): Best for Long-Term Consistency. Its 22-year dividend growth streak, low payout ratio, and capital reinvestment plans make it a top pick for safety and growth. A 3.9% yield with sub-50% payout ratio is hard to beat in utilities.

2. Sempra (SRE): Solid Middle Ground. While its yield is modest, its 15-year track record and 6.5% 10-year growth rate provide stability in a sector critical to infrastructure spending. Investors seeking moderate growth with utility-sector exposure should consider SRE.

3. Philip Morris (PM): High-Yield, High-Risk Play. The 5.07% yield is enticing, but flat 2025 growth and elevated payout ratio signal caution. PM is best suited for investors willing to accept sector-specific risks for income.

Final Take: Evergy’s combination of longevity, safety, and growth makes it the most compelling choice. Sempra offers a balanced alternative, while Philip Morris requires a higher tolerance for industry-specific headwinds. For portfolios prioritizing dividends, these three companies remain consistent moneymakers worth serious consideration.

Data as of April 2025. Past performance does not guarantee future results.