Avista: Put Your Energy Behind This Utility Company Soon To Become A Dividend Aristocrat

Avista is rated a hold due to flat earnings outlook, high debt, and limited near-term growth despite its essential utility role. AVA faces revenue headwinds from warmer weather and the loss of a major industrial customer, with a projected $93.45 million revenue impact in 2026. The company maintains a strong 4.68% dividend yield and is poised to become a Dividend Aristocrat, with 24 consecutive years of increases and a 5% CAGR. AVA's capital needs will be funded by $230 million in new debt and $90 million in equity issuance, raising concerns over balance sheet strength and dilution.

Energy makes it possible to run our modern economy. Utility companies provide the energy necessary to power our homes and heat them in the winter. As an investor, I like to invest in businesses that provide an essential service.