ES vs SRE: Dividend Comparison
Dividend data as of
Eversource Energy (ES) and Sempra (SRE) are both in the Utilities sector, making them natural rivals for dividend investors. ES offers a significantly higher 4.29% yield compared to SRE's 2.85%, a gap of 1.44%. For dividend growth, ES leads with a 5-year CAGR of 5.7% versus SRE's 4.1%. SRE holds the edge in dividend safety with a "Moderate" rating. ES is a Dividend Aristocrat while SRE is a Dividend Contender.
Verdict
Yield Analysis
ES yields 1.44% more than SRE. In dollar terms, ES pays $2.97/share vs SRE's $2.56/share annually.
Dividend Growth
ES: Dividend growth has been steady, with a 3-year CAGR of 5.6% and a 5-year CAGR of 5.7% (10-year: 6.0%).
SRE: Dividend growth has been steady, with a 3-year CAGR of 4.1% and a 5-year CAGR of 4.1% (10-year: 6.1%).
Dividend Safety
ES: The payout ratio of 82% is elevated, which may indicate the dividend could be cut if earnings decline. Earnings cover the dividend 1.2x.
SRE: The payout ratio of 79% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.3x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in ES vs SRE today?
At $73.58 per share, $10,000 buys about 135.9 shares of Eversource Energy (ES). Each share pays $2.97 per year in dividends, so the position starts out generating roughly $404 per year — about $34 a month.
At $94.71 per share, $10,000 buys about 105.6 shares of Sempra (SRE). Each share pays $2.56 per year in dividends, so the position starts out generating roughly $270 per year — about $22 a month.
ES is the larger income stream from day one: $134 per year more on the same $10,000 invested.
What could $10,000 of ES or SRE income look like in 10 years?
Eversource Energy (ES) has raised its dividend about 5.7% a year over the past five years. If that pace held, the $429 per year that $10,000 generates today at the current 4.29% yield would reach $748 per year by 2036 — a 7.5% yield on the original cost.
Sempra (SRE) has raised its dividend about 4.1% a year over the past five years. If that pace held, the $285 per year that $10,000 generates today at the current 2.85% yield would reach $424 per year by 2036 — a 4.2% yield on the original cost.
On those trailing rates, ES pays more in 2036: $748 versus $424 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would SRE's dividend growth overtake ES's higher yield?
It doesn't, on the trailing numbers. Eversource Energy (ES) yields more today (4.29% vs 2.85%) and has also grown its dividend at least as fast (5.7% vs 4.1% a year over five years). Unless SRE accelerates its raises or ES stumbles, SRE never closes the income gap — ES wins on both current income and growth.
Can ES and SRE afford their dividends?
Eversource Energy (ES) earns $3.62 per share against $2.97 paid out in dividends — 1.2x coverage (a 82% payout ratio).
Sempra (SRE) earns $3.25 per share against $2.56 paid out in dividends — 1.3x coverage (a 79% payout ratio).
Coverage is similar for both, so neither dividend looks meaningfully more stretched than the other on current earnings.
Which fits an early-retirement income portfolio better, ES or SRE?
For income you need right now, Eversource Energy (ES) leads: $100,000 invested today pays about $358 a month at the current 4.29% yield, versus $237 a month from Sempra (SRE) at 2.85%.
ES also leads on dividend growth (5.7% vs 4.1% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: ES has raised its dividend 26 consecutive years; SRE has raised its dividend 15 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $1,138/yr in ES vs $562/yr in SRE by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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