Sempra (SRE) is a Top Dividend Stock Right Now: Should You Buy?

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Sempra in Focus

Based in San Diego, Sempra (SRE) is in the Utilities sector, and so far this year, shares have seen a price change of 24.71%. The natural gas and electricity provider is currently shelling out a dividend of $1.14 per share, with a dividend yield of 2.78%. This compares to the Utility - Gas Distribution industry's yield of 2.93% and the S&P 500's yield of 1.69%.