3.58% Dividend Yield, 22 Years of Dividend Hikes – The Heartland’s Electric Utility Driving Reliable Power and Growth
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The steady hand behind the power switch
In the heart of the Midwest, a massive network of power lines and substations hums with the work of moving electricity to homes and businesses. This company keeps lights on across two states, relying on a combination of coal, gas, renewables, and nuclear, and it operates under the watchful eyes of state regulators. Its backbone is a legacy of steady infrastructure, ongoing upgrades, and a balance between old-school reliability and new energy sources—ensuring that demand is met year after year, storm after storm.
Evergy (EVRG)
Financial Score: 84 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn. Evergy delivers electricity to more than 1.6 million customers in Kansas and Missouri, balancing a generation mix that includes fossil fuel, renewables, and nuclear. For the third quarter of 2025, the company reported net income of $475 million, or $2.03 per share, edging up from $2.02 per share the year before. Revenue for the quarter was $1.81 billion, in line with the previous year. The Kansas Corporation Commission greenlit a major infrastructure expansion, including new fossil gas and solar projects, signaling confidence in long-term growth, though regulators also urged cost-conscious pacing to protect ratepayers.
Dividends rising alongside the poles and wires
The annual forward dividend is $2.78, yielding 3.58%, with a payout ratio near 73.35%. For 22 straight years, Evergy has raised its payout, growing the dividend by 35% over the past five years. This streak is built on a mix of regulatory rate cases, cost control, and the slow but steady expansion of its rate base. Payout is high but supported by regulated cash flows, though this leaves less cushion than lower-payout peers. The dividend’s growth reflects both earnings strength and management’s commitment to returning cash, even as capital spending ramps up for system upgrades.
Latest numbers: Steady but tested
Q3 2025 EPS came in at $2.03, a slight improvement from the year before, while revenue was flat at $1.81 billion. Evergy narrowed its full-year EPS guidance to $3.92–$4.02, reflecting weather and regulatory impacts. Capital expenditures are set to rise, with nearly $17.5 billion slated for 2025–2029, including $6.17 billion in new generation assets. The company is expanding its solar capacity, launching demand response programs, and evaluating battery storage to improve grid flexibility, all while facing rising customer rates that have drawn regulator scrutiny.
Growth fueled by regulatory backing and energy transition
Evergy’s future is tied to its ability to balance investment in new infrastructure with affordable rates. The Kansas Commission’s July 2025 order mandates that Evergy diversify its portfolio, emphasizing demand response and grid-enhancing technologies to minimize costly rate hikes. The company is investing in distributed resources like community solar and battery storage, and is required to file detailed fuel supply plans to mitigate price volatility. These moves position Evergy to adapt to evolving energy needs and regulatory expectations.
Fun Fact – A court case that changed Kansas electricity
In 2023, Evergy won a high-stakes regulatory battle in Kansas that set new rules for how utilities invest in generation and recover costs. The case sparked a wave of demand response and distributed solar programs across the state, making Evergy’s rate base expansion a model for balancing growth with consumer protection.
Final Take
Evergy delivers a stable income stream with a high-yield, long-growing dividend, powered by regulated utilities and steady infrastructure investment. Its Financial Score of 84 signals solid fundamentals and execution, though the elevated payout and regulatory scrutiny require vigilance. Capital spending, renewable projects, and grid modernization lay the foundation for future growth, but rate pressures and the energy transition present ongoing challenges. For investors seeking utility income with a dose of transformation risk, Evergy’s story is one of growth shaped by regulation, necessity, and shifting customer demands.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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