Where does OGE Energy rank after its 10% announced dividend increase?

oge

OGE Energy Corporation (OGE) announced a regular quarterly dividend of $0.3025, a 10 percent increase from the prior rate of $0.275 per share. The dividend will be paid at the new higher rate on October 28, 2016, to shareholders of record at close of business on October 11, 2016. OGE Energy Corp. is currently priced at $32.11.

Listed in the table below are the quarterly dividend payments since 2010. Our analysis of OGE Energy as a Top 100 Dividend Stock candidate is listed below;

Date Quarterly Dividend
10/11/2016 0.3025
7/6/2016 0.275
4/6/2016 0.275
1/6/2016 0.275
10/7/2015 0.275
7/8/2015 0.25
4/8/2015 0.25
1/7/2015 0.25
10/8/2014 0.25
7/8/2014 0.225
4/8/2014 0.225
1/8/2014 0.225
10/8/2013 0.209
7/9/2013 0.209
4/8/2013 0.208
1/8/2013 0.208
10/5/2012 0.197
7/6/2012 0.197
4/5/2012 0.197
1/6/2012 0.197
10/5/2011 0.188
7/6/2011 0.188
4/6/2011 0.188
1/6/2011 0.188
10/6/2010 0.181
7/7/2010 0.181
4/7/2010 0.181
1/6/2010 0.181

Analysis of OGE Energy is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 3.36 53
Dividend Growth (3-6 year avg) 8.8% 167
Forward P/E 16.20 213
S&P Financial Rating A 120
Beta 0.90 100
Total Score 653

Additional Information on P/S ratio and historical yield;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate SPS 2016 P/S Ratio 10 yr P/S Low 10 yr P/S High 5 yr max Yield % 5 yr lowest Yield %
3.36% 10% 7.6% 10.50 3.06 0.37 3.06 4.24% 2.20%

Final Analysis;

  • OGE Energy’s dividend yield is higher than that of the S&P 500 Index and is also trading towards the higher end of its average historical dividend yield.
  • OGE Energy maintains a 3 year dividend growth rate of 10%.
  • OGE Energy has paid out a dividend consecutively for the past 21 years.
  • OGE Energy is trading at the top of its average price/sales (P/S) range at 3.06.  From a relative valuation perspective, OGE Energy is overvalued based upon its historical trading history.
  • OGE Energy maintains a credit rating of A. This is above investment grade, a positive.
  • OGE Energy maintains a beta of 0.90, lower than the average company.
  • OGE Energy’s total ranking is 157.

Based upon its high P/E ratio and low dividend growth rate, OGE Energy does not qualify as one of our Top 100 Dividend Stocks.

OGE Energy Corp. Dividend Yield Chart (Click to enlarge)

oge2

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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