Vistra Corporation (VST) continues to be rated “buy” for investors seeking capital appreciation, but not for dividend investors. Despite a 250% stock price increase, the dividend yield remains low at 1.3%.
Vistra’s acquisition of Energy Harbor, adding 4 nuclear plants and 1 million retail customers, strengthens its position in the energy industry. The company is also seeking to extend the life of its Comanche Peak nuclear units, providing key baseload capacity.
Other factors contributing to Vistra’s growth prospects include low natural gas prices, Texas population growth, oilfield electrification, AI-driven electricity demand, crypto mining, and share buybacks. The company’s recent authorization of $1.5 billion for share repurchases further enhances its investor appeal.
However, concerns remain regarding Vistra’s high leverage and increasing debt costs. Investors are advised to consider these factors carefully before making any investment decisions.
