Picture this: you’re sipping coffee, planning your portfolio, and wondering how to balance growth with safety in a world of skyrocketing energy costs. Enter Eversource Energy, a New England utility titan delivering steady dividends and predictable cash flows while quietly leading the charge toward clean energy. For retail and institutional investors, this stock is your ticket to sleeping soundly during market storms, with a juicy 4.7% dividend yield and a potential 5–10% upside if it breaks key resistance levels. Here’s why Eversource deserves a spot in your investment radar.
Imagine powering millions of homes across New England without the drama of volatile oil markets- that’s Eversource Energy in a nutshell. As a regulated utility giant, Eversource delivers reliable electricity, natural gas, and water to over 4 million customers in Connecticut, Massachusetts, and New Hampshire.
With nearly 10,000 employees and roots dating back to the 19th century, the company focuses on smart grid upgrades and clean energy integration, making it a quiet hero in the push toward sustainability. For investors like you, this means predictable cash flows in an unpredictable world.
Eversource kicked off 2025 strong, reporting Q1 earnings of $550.8 million ($1.50 per share), up slightly from last year, thanks to higher rates and investments in infrastructure. Revenue hit $12.99 billion over the trailing 12 months, a 14.4% jump, while gross profit surged 27.9% to $9.17 billion, reflecting efficient operations in its electric and gas segments.
Key ratios shine: a forward P/E of 13.5x (below the industry’s 17.9x), a PEG of 2.4, and a price-to-sales of 1.8x, signaling undervaluation for value hunters. These metrics suggest Eversource is building a resilient balance sheet, with full-year EPS guidance reaffirmed at $4.67-$4.82, promising 5–7% long-term growth through 2029.
Eversource’s stock (NYSE: ES) has shown steady grit in 2025, closing around $65.70 as of mid-September, up about 4.5% from recent lows but down -3% year-over-year amid broader utility sector pressures like rising rates. The 52-week range spans $52.28-$69.01, with analysts’ median target at $65.05 (high of $78), hinting at modest 5% upside if regulatory wins materialize.
Trading at a 4.7% dividend yield, it’s a defensive play that underperformed the S&P 500’s 16.9% gain but offers stability for institutional portfolios seeking low-volatility exposure. Watch for a breakout above $70, which could target $80-$90 based on technical patterns like a multi-year falling wedge.
The stock price has risen by more than 295.73% since the IPO.
In the crowded U.S. utility arena, Eversource stands out as New England’s largest energy deliverer, competing with regional heavyweights like National Grid and Avangrid, while facing national players such as NextEra Energy and Southern Company.
Its edge lies in a diversified portfolio-electric distribution to 3.7 million customers, plus gas and water- fueled by $24.2 billion in planned investments through 2029 for grid modernization and renewables. Competitors like Dominion Energy grapple with similar regulatory hurdles, but Eversource’s focus on clean energy pilots (e.g., geothermal and EV charging) positions it for growth in a decarbonizing Northeast. This landscape favors Eversource’s stable, rate-regulated model over flashier renewables pure-plays.
Competitor Comparison Table
The company operates in the densely populated and energy-intensive New England region, where it holds a leading position. As we’ve seen before, the energy sector often struggles to generate strong cash flows, particularly in Green energy. Despite billions in revenue, the Net profit margin is only 7% and shows a declining trend.
The company invests heavily, relying on borrowed funds, which results in negative Free cash flow (FCF). However, its Debt-to-equity ratio remains solid at 1.32. The historical compound annual growth rate (CAGR) of the stock is just 3.47%, and we don’t expect much higher in the future. The company stands out for its dividends, with a yield of 4.51%, significantly above the market average, and an average annual increase of over 6%.
Still, it’s worth noting that, as of this writing, the company’s stock appears undervalued in the market, offering potential for capital appreciation. By reinvesting dividends, investors could achieve average annual returns of 5–10%, depending on market conditions.
2025–2029 Price Targets:
*Theoretical calculation. Actual results may differ significantly due to market conditions as well as your investment strategy and tactics.
After a significant stock price correction in the summer of 2022, two strong support levels formed at $52 and $55, with the price showing moderate upward momentum. However, there are also significant resistance levels at $67 and $69.
Once the price breaks through these resistance levels, a stronger bullish trend is likely to emerge. In this scenario, it’s advisable to enter a position with a small capital allocation now and add to it once the resistance levels are breached.
Eversource continues its streak as a dividend aristocrat, raising payouts 5% to $3.01 annualized ($0.7525 quarterly) for 2025, payable September 30 to shareholders of record by September 22. This yields a juicy 4.7%, well above the five-year average of 3.5%, supported by strong free cash flow and a payout ratio around 127%-manageable for a utility with regulated returns.
On buybacks, the company prioritizes capital investments over aggressive repurchases, but its focus on debt reduction post-offshore wind divestiture could free up funds for future share retirements. For retail investors, this policy screams „set it and forget it,” compounding returns in a high-yield environment.
In early September 2025, Eversource sought approval for a long-term natural gas supply shift, projecting $400 million in customer savings over the contract life while cutting reliance on imported LNG- a win for affordability and emissions. This follows Q2 earnings of $352.7 million ($0.96 per share), beating expectations and reaffirming full-year guidance, amid a 10% hike in its five-year capex plan to $24.2 billion for clean energy infrastructure.
These developments enhance Eversource’s value by de-risking operations, improving cash flows (up 2–4% in EPS estimates), and supporting rate stability, potentially lifting stock valuation by 5–10% if regulators greenlight them. For investors, it’s a signal of proactive adaptation in a transitioning energy market, far from the offshore wind headaches of yesteryear.
These insights from X’s trading community underscore Eversource’s appeal as a compounding play, blending stability with upside in a sector ripe for re-rating.
Eversource Energy isn’t the flashy tech stock stealing headlines, but it’s the reliable workhorse powering your portfolio-and millions of homes-without breaking a sweat. With a breakout looming and dividends sweeter than your morning latte, this utility gem offers stability with a side of growth. So, plug into Eversource before it lights up the charts, because who says steady can’t be sexy?
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.
Originally published at https://www.aipt.lt on September 16, 2025.
Is Eversource Energy the Ultimate Dividend Stock to Buy Before It Breaks $70? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.
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