Should Sempra’s (SRE) Dividend and 2025 Guidance Shift Investor Perspectives on Growth and Stability?

• Sempra recently declared a US$0.645 per share quarterly dividend payable on January 15, 2026, and provided updated full-year 2025 earnings guidance, affirming its long-term growth targets.
• A unique aspect of this announcement is the combination of steady dividend payouts with reaffirmed high-end growth expectations, signaling management's confidence in both ongoing cash generation and the business outlook despite recent profit fluctuations.
• Next, we'll explore how Sempra's updated 2025 earnings guidance could shift the company's long-term investment narrative and risk profile.

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Sempra Investment Narrative Recap

To be a Sempra shareholder, you need to believe in the resilience of regulated utilities in high-growth regions like Texas and California, and the company’s capacity to navigate earnings volatility while deploying significant capital for future infrastructure needs. The recent dividend declaration and updated earnings guidance reinforce the company’s focus on steady income and long-term earnings targets, but don’t materially impact the most important short-term catalyst, execution of major Texas infrastructure investments. The biggest risk remains potential regulatory changes in Sempra’s California and Texas utility operations.

The most relevant recent announcement is Sempra’s reaffirmation of its 2025 full-year earnings guidance and its projected long-term EPS growth of 7% to 9%. This guidance not only projects ongoing growth, but also aligns with the company’s ongoing capital allocation to support grid expansion, which is key to supporting future returns in the face of evolving regulatory and market dynamics.

By contrast, investors should be aware of how sudden legislative or regulatory changes in California or Texas could ...

Read the full narrative on Sempra (it's free!)

Sempra's outlook anticipates $16.6 billion in revenue and $3.8 billion in earnings by 2028. This is based on a 7.6% annual revenue growth rate and a $1.1 billion earnings increase from the current $2.7 billion.

Uncover how Sempra's forecasts yield a $96.53 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community put Sempra’s range between US$79.69 and US$96.53 per share. While strong Texas growth is a catalyst, contrasting views reflect how regulatory shifts could reshape the company’s earnings outlook, see how other investors assess the balance of risks and rewards.

Explore 3 other fair value estimates on Sempra - why the stock might be worth as much as $96.53!

Build Your Own Sempra Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sempra research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free Sempra research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sempra's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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