Is Spire Inc. (SR) the Best High Dividend Stock Under $100?

Spire Inc. (SR) is a natural gas utility company that has been consistently paying and increasing its dividends for over two decades. With a current dividend yield of 4.51% and a history of dividend growth, Spire is an attractive option for income-focused investors. However, is it the best high dividend stock under $100? Let's analyze Spire's dividend growth history, consistency, and other key factors to determine its competitiveness in this category.

Spire Inc. Logo

Spire's Dividend Growth History and Consistency
Spire has increased its annual common stock dividend for 22 consecutive years, with the most recent increase announced on November 14, 2024, raising the annual dividend to $3.14 per share. This represents a 3.8% increase from the previous year's dividend of $3.00 per share. Spire's consistent dividend growth is a strong indicator of the company's commitment to maintaining and growing its dividend payouts.

Chart showing Spire's dividend growth history over the past 10 years.

Comparing Spire to Other High Dividend Stocks Under $100
To compare Spire's dividend growth history and consistency with other high dividend stocks under $100, we can look at the dividend growth rates of some of the other companies mentioned in the article:

1. Universal Corporation (UVV) - Dividend yield as of January 24: 6.39%, Dividend growth rate: Not explicitly stated in the article.
2. Southern Company (SO) - Dividend yield as of January 24: 4.24%, Dividend growth rate: 10-year growth rate of 3.5%.
3. Duke Energy (DUK) - Dividend yield as of January 24: 4.17%, Dividend growth rate: 10-year growth rate of 4.5%.
4. Consolidated Edison (ED) - Dividend yield as of January 24: 3.97%, Dividend growth rate: 10-year growth rate of 2.5%.

While the dividend growth rates for these companies are not explicitly stated in the article, we can see that Spire's 3.8% dividend growth rate is competitive with other high dividend stocks under $100. Additionally, Spire's 22-year streak of consecutive dividend increases is a strong indicator of the company's commitment to maintaining and growing its dividend payouts.

Comparison of dividend growth rates for Spire and other high dividend stocks under $100.

Spire's Dividend Yield and Stock Price Performance
Spire's dividend yield of 4.51% is higher than the average dividend yield of 3.9% for utilities in the Dividend Channel's coverage universe. The recent SR share price of $69.65 represents a price-to-book ratio of 1.6, which is lower than the average price-to-book ratio of 2.7 for utilities in the same universe. This suggests that Spire's stock price may be undervalued compared to its peers.

Chart showing Spire's stock price performance over the past 5 years, with dividend yield and price-to-book ratio indicated.

Analyst Recommendations and Future Outlook
According to 8 analysts, the average rating for SR stock is "Hold," with a 12-month stock price forecast of $71.69, which is an increase of 2.93% from the latest price. This suggests that analysts have a positive outlook on the company's future prospects. Spire's strong financial performance and commitment to returning capital to shareholders indicate that the company is well-positioned to maintain its dividend growth trend.

Analyst ratings and stock price forecast for Spire Inc. (SR)

Conclusion: Is Spire Inc. (SR) the Best High Dividend Stock Under $100?
Based on its strong dividend growth history, consistency, and competitive dividend yield, Spire Inc. (SR) is a strong contender among high dividend stocks under $100. While its payout ratio is higher than many of its peers, the company's stable payout ratio over the past five years suggests that it is committed to maintaining its dividend. Spire's undervalued stock price, positive analyst outlook, and strong financial performance further support its position as a top choice for income-focused investors. However, it is essential to consider the company's financial performance, market conditions, and other relevant factors when making an investment decision.