Reasons Why Entergy (ETR) is an Excellent Dividend Investment at This Time
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 24 2025
0mins
Should l Buy ETR?
Source: NASDAQ.COM
Income Investing Focus: Income investors prioritize generating consistent cash flow, primarily through dividends, which are a significant contributor to long-term returns, often exceeding one-third of total returns.
Entergy's Dividend Performance: Entergy (ETR) offers a current dividend yield of 2.64% with a recent annualized dividend increase of 4.6%, and is expected to see solid earnings growth, making it a compelling investment opportunity in the utilities sector.
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Analyst Views on ETR
Wall Street analysts forecast ETR stock price to rise
15 Analyst Rating
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 101.960
Low
86.00
Averages
103.87
High
115.00
Current: 101.960
Low
86.00
Averages
103.87
High
115.00
About ETR
Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. The Company operates primarily through a single segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans. The Utility segment includes five retail electric utility subsidiaries: Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, and Entergy Texas, Inc. These companies generate, transmit, distribute, and sell electric power to retail and wholesale customers in Arkansas, Louisiana, Mississippi, and Texas. The Company owns and operates power plants with approximately 25,000 MW of electric generating capacity. It delivers electricity to approximately three million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Utilities Sector Performance: The utilities sector in the S&P 500 has shown remarkable performance in 2026, rising over 2% on Friday, marking its longest winning streak since July 2024, indicating strong market confidence.
- American Electric Power Earnings: American Electric Power reported adjusted earnings of $1.19 per share for Q4, exceeding the market expectation of $1.15, with revenue of $5.31 billion, showcasing effective execution under new management and growth potential.
- Entergy's Outlook: Entergy's adjusted earnings came in at 51 cents per share for Q4, slightly below expectations, yet its 2026 guidance indicates robust growth prospects with an 8% CAGR for retail sales, reflecting a conservative approach to new projects.
- Analyst Ratings Optimistic: Analysts are generally bullish on both American Electric Power and Entergy, with 10 out of 24 analysts rating AEP as buy or strong buy, and 19 out of 25 analysts giving similar ratings to Entergy, reflecting strong confidence in utility stocks.
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- Strong Performance: Entergy reported an adjusted EPS of $3.91 for 2025, positioned in the upper half of its guidance range, reflecting positive performance driven by robust sales growth and customer investments, with expectations of over 8% annual growth through 2029.
- Sales Growth Momentum: The company achieved a 4% sales growth in 2025, with industrial sales up 7%, and anticipates an acceleration in growth, projecting an 8% compound annual growth rate from 2025 to 2029, which will further enhance market share and profitability.
- Capital Investment Plan: Entergy plans to invest $8 billion in 2025, with about half directed towards generation projects, leading to a total capital plan of $43 billion, demonstrating a strong commitment to future customer growth, particularly with investments in the Cottonwood Generating Station.
- Risk Management Measures: Management emphasized contract protections and regulatory support, estimating restoration costs from Winter Storm Fern at up to $600 million, with most costs expected to be recovered through normal mechanisms, ensuring financial stability and continued shareholder value creation.
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- Earnings Performance: Entergy's Q4 non-GAAP EPS of $0.51 missed expectations by $0.01, indicating some pressure on profitability that could affect investor confidence and stock performance.
- Future Guidance: The company initiated its 2026 adjusted EPS guidance range of $4.25 to $4.45, slightly below the consensus of $4.40, reflecting a cautious outlook on future earnings growth that may lead to stock price volatility.
- Market Positioning: Entergy is characterized as a regulated growth utility rather than an income stock, which may influence the type of investors it attracts, particularly in a rising interest rate environment.
- Demand and Regulatory Trends: Despite the earnings pressure, Entergy benefits from favorable demand and regulatory trends, which could support its long-term growth, especially in the context of the renewable energy transition.
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- 2026 Earnings Outlook: Entergy Corp. reported fourth-quarter results projecting adjusted earnings guidance for 2026 in the range of $4.25 to $4.45 per share, indicating confidence in future profitability despite a cautious market outlook.
- Analyst Expectations Comparison: A survey of 24 analysts indicated an average expected earnings of $4.40 per share for the quarter, reflecting a cautiously optimistic view on Entergy's earnings potential and the overall stability of the industry.
- Stock Price Movement: In Thursday's pre-market trading, Entergy's stock was priced at $97.75, down $2.46 or 2.45%, indicating a cautious market reaction to its earnings report, which may affect investor confidence.
- Market Reaction Analysis: While the company provided a positive long-term earnings outlook, the short-term decline in stock price could influence investor decisions, particularly in the current economic climate, necessitating enhanced communication with investors to stabilize market sentiment.
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- Profit Decline: Entergy Corp reported a fourth-quarter net profit of $236 million, or $0.51 per share, which represents a significant drop from last year's $286 million and $0.65 per share, indicating pressure on the company's profitability.
- Adjusted Earnings: Excluding items, Entergy's adjusted earnings also stood at $236 million, or $0.51 per share, suggesting no improvement in the company's core business profitability despite the overall decline.
- Year-over-Year Comparison: The net profit decreased by 17.5% compared to last year, which may affect investor confidence in the company's future growth, especially against the backdrop of volatility in the energy market.
- Market Reaction: Due to the profit decline, the market is adopting a cautious stance on Entergy's outlook, which could put pressure on the stock price, prompting investors to monitor the company's future strategic adjustments and changes in market conditions.
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- Financial Highlights: In Q4 2025, Entergy reported earnings per share of $0.51, with full-year EPS at $3.91, reflecting a significant increase of $1.46 compared to 2024, indicating robust growth in electric service agreements.
- Business Growth: The Utility segment reported earnings of $2.28 billion for 2025, translating to $5.06 per share, up $0.83 from 2024, showcasing the success of the company's market expansion strategy among data centers and traditional industrial customers.
- Adjusted Earnings: The adjusted EPS for 2025 was $3.91, an increase of $0.25 from $3.65 in 2024, demonstrating effective cost control and operational optimization measures implemented by the company.
- Future Outlook: Entergy has initiated its 2026 adjusted EPS guidance range of $4.25 to $4.45, reflecting confidence in future performance and anticipated continued benefits from growing electricity demand.
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