Xcel Energy Inc.

XEL
Utilities
$79.62
2.92%Overvalued

Xcel Energy Inc. (XEL) is a Utilities company that currently yields 2.92% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $55.85 and the overvaluation threshold at $80.80. Xcel Energy Inc. holds a quality score of 32/100 (Risky), reflecting 1 consecutive years of dividend growth with a 66% payout ratio. The 5-year dividend CAGR stands at 10.5%.

XEL Dividend Yield History — Weiss Valuation

Underval. $55.85Overval. $80.80

Distance to undervalued

Entry price is stretched

Needs 29.9% downside to reach the Weiss buy zone

Undervaluation starts near $55.85, where the annual dividend would imply roughly 4.16% yield. That is 1.24% above today's yield.

Buy-zone price

$55.85

Target yield

4.16%

Research checklist

What to clear before buying the yield

Updated Jul 9, 2026

Dividend durability

1Y

Verify the dividend record before treating yield as durable.

Earnings payout

66%

Earnings coverage leaves room for noise.

Cash payout

N/A

Confirm cash conversion and one-off effects.

Dividend growth

10.5%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-07-082026-07-09

Price

-1.3%

$80.67 $79.62

Price fell 1.3% since the prior snapshot.

Why Now?

Xcel Energy Inc. is trading near its historical overvaluation band.

Current yield 2.9% vs historical max 5.9% (50% of maximum).

Recent dividend history shows no sustained growth streak.

Reasonable payout ratio of 66%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 32/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

XEL Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$323

Year 10 Income

$1,227

Yield on Cost

13.24%

Total Income

$6,695

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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XEL Dividend Quality Score

Quality Score

32/ 100

Risky

Payout Ratio12/25
Dividend Streak0/25
Growth (CAGR 5Y)20/20
Yield vs History0/15
FCF Coverage0/15

Key Metrics

Current Price$79.62
Annual Dividend$2.33
Current Yield2.92%
Yield — Max (10Y)5.89%
Yield — Min (10Y)2.94%
Undervalued Below$55.85
Overvalued Above$80.80
Payout Ratio66.35%
CAGR Dividend 5Y10.5%
CAGR Dividend 10Y8.2%
Years No Cut1y

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consecutive years of dividend growth