Should I buy Severn Trent stock in 2025?
Is Severn Trent stock a buy right now?
As of early May 2025, Severn Trent PLC stands out on the London Stock Exchange, with its shares priced at approximately 2,741.00p and a typical daily trading volume near 700,000 shares. This established water and wastewater utility, focused on the Midlands and serving around 4.7 million UK households and businesses, represents a cornerstone in the defensive utilities sector. The recent confirmation of Severn Trent’s £14.9 billion investment programme for 2025–2030 underscores clear regulatory support and sets the stage for substantial RCV growth over the years ahead. Notably, the stock’s technical setup is robust—trading consistently above all key moving averages, with an RSI of 64.44 suggesting there is still room before overbought levels are reached. While moderate caution is warranted due to sector gearing and occasional regulatory debates, the overall market sentiment remains constructive, buoyed by Severn Trent's commitment to dividend growth, operational excellence, and ambitious ESG targets. Consensus among more than 30 national and international banks currently places a target price of 3,563.00p on the stock, indicating further upside potential for investors considering a reliable, income-oriented holding in a changing UK market landscape.
- Stable regulated earnings provide consistent, predictable returns across economic cycles.
- Attractive dividend yield near 4.3%, with growth policy linked to UK inflation.
- Large £14.9bn approved investment plan supports future asset and value growth.
- Strong ESG profile with net zero carbon commitments and 66% own energy generation.
- Share price remains in a technical uptrend above all key moving averages.
- High sector-typical leverage may be sensitive to interest rate moves or regulation shifts.
- Dividend payout ratio appears elevated on net income, balanced by stable cash flow.
- What is Severn Trent?
- How much is Severn Trent stock?
- Our full analysis on Severn Trent </b>stock
- How to buy Severn Trent stock in United Kingdom?
- Our 7 tips for buying Severn Trent stock
- The latest news about Severn Trent
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Severn Trent’s performance for over three years. Every month, hundreds of thousands of users across the United Kingdom rely on us to interpret market trends and pinpoint the most promising investment opportunities. Our analyses are intended for informational purposes only and do not represent investment advice. In line with our ethical charter, we have never been, and will never be, paid by Severn Trent.
What is Severn Trent?
| Indicator (emoji + name) | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | UK-based regulated water utility serving Midlands and surrounding regions. |
| 💼 Market | London Stock Exchange (LSE) | Severn Trent is among a few listed UK water utilities, providing essential services. |
| 🏛️ ISIN code | GB00B1FH8J72 | Unique identifier for trading and international investment. |
| 👤 CEO | Liv Garfield | Liv Garfield leads Severn Trent, focusing on growth and operational excellence. |
| 🏢 Market cap | £8.23 billion | Reflects large size and significant sector presence; suggests investor confidence and stability. |
| 📈 Revenue | £2.39 billion (TTM) | Indicates steady income from regulated water and wastewater operations. |
| 💹 EBITDA | £939.1 million (TTM) | High EBITDA shows solid profitability despite sector capital intensity. |
| 📊 P/E Ratio (Price/Earnings) | 35.32 (TTM); forward 12.94 | High P/E signals premium for stability; forward P/E suggests stronger earnings growth ahead. |
How much is Severn Trent stock?
Severn Trent's stock price is falling this week. Currently, Severn Trent shares are trading at 2,741.00p, down 1.40% over the past 24 hours, with a modest weekly decline of 0.95%. The company's market capitalisation is approximately £8.23 billion, and the three-month average daily volume is 710,000 shares.
Severn Trent reports a price-to-earnings (P/E) ratio of 35.32, and offers a favourable dividend yield of 4.3%. The stock's beta is currently 0.58, indicating relatively low volatility when compared to the broader market.
This stable profile makes Severn Trent an appealing option for investors seeking consistent income with reduced exposure to market swings.
Compare the best brokers in the UK!Compare brokersOur full analysis on Severn Trent stock
Having closely examined Severn Trent PLC’s most recent financial disclosures and assessed its share price trajectory over the past three years, our multifactor approach—merging quantitative financial metrics, technical signals, and peer benchmarking within proprietary analytical algorithms—yields an increasingly constructive outlook on this prominent UK water utility. In an environment where both stability and innovation are highly valued, Severn Trent stands out as an example of robust operating performance and forward-looking strategy. So, why might Severn Trent stock once again become a strategic entry point into the UK utilities sector as we approach 2025?
Recent Performance and Market Context
Over the trailing twelve months, Severn Trent (SVT) has showcased a notable degree of price resilience and stability amid broader market volatility, currently trading at 2,741p—comfortably positioned in its 52-week range of 2,310p to 2,807p. Despite a brief 1.40% retracement in the latest session, the stock remains close to its yearly highs, underscoring consistent market confidence and highlighting its defensive attributes during periods of uncertainty.
Noteworthy positive developments have included Severn Trent’s robust quarterly results, with year-on-year revenue growth of 4.5% and a remarkable 174% surge in quarterly earnings. Meanwhile, the company recently secured regulatory approval for an ambitious £14.9 billion capex plan spanning 2025–2030—a move widely interpreted as a visible endorsement from the relevant authorities and one that provides significant forward visibility for both operational expansion and investor returns.
The broader sector backdrop is also constructive. As inflation moderates and interest rate policy stabilises, defensive stocks with inflation-linked revenue models—such as regulated utilities—are discriminatingly favoured by institutional and retail capital alike. Within this context, Severn Trent’s high market capitalization (£8.23 billion), and its position as one of just three UK-listed water utilities, further enhances its strategic relevance.
Technical Analysis
From a technical standpoint, Severn Trent demonstrates all hallmarks of a share in a bullish phase. The current price sits securely above all principal exponential moving averages (EMA)—20-day (2,670.75p), 50-day (2,585.87p), 100-day (2,549.82p), and 200-day (2,529.86p)—indicative of an entrenched uptrend. This alignment, particularly when supported by strong rising volume, typically signals sustainable momentum and healthy investor participation.
The Relative Strength Index (RSI) stands at 64.44, reflecting positive momentum without being technically overbought—a sign that further upside is feasible before any short-term exhaustion. While the Moving Average Convergence Divergence (MACD) indicator displays some divergence and has flashed a short-term sell signal, this is consistent with a market entering a brief consolidation phase rather than signaling the end of the underlying bullish structure.
Crucially, key support levels cluster around 2,718.67p to 2,736.33p, suggesting a strong floor should profit taking or short-term volatility emerge. Immediate resistance appears at 2,807.67p, while a breakout above this could pave the way for a retest of all-time highs. From a chartist’s perspective, SVT is structurally well-positioned for near-term appreciation, especially if it consolidates above support and subsequently breaks past established resistance.
Fundamental Analysis
On a fundamental level, Severn Trent’s performance has been exemplary in the current environment. The business reported trailing twelve-month revenue of £2.39 billion and EBITDA of £939.1 million—a testament to both scale and efficiency. Net income reached £230 million, with earnings per share at 0.78p. Revenue and EPS growth, driven by operational discipline and effective cost management, are especially notable amidst sector headwinds.
Valuation remains a key consideration for investors. The current trailing P/E ratio of 35.32, while superficially elevated, compresses to a forward P/E of 12.94—demonstrating that consensus expects rapid earnings normalisation linked to regulatory certainty and operational growth. The Price-to-Book ratio stands at 4.53, rationalised by the embedded value in Severn Trent’s substantial asset base and the consistent regulatory returns on invested capital.
- Market Leadership: Serving 4.7 million customers across a densely populated catchment.
- Brand Reliability: Decades-long record as a trusted provider of essential services.
- Innovation: Heavy investment in operational automation, digitalisation, and leakage prevention places it at the sector’s innovation frontier.
- ESG Credentials: Sector-leading triple carbon pledge and environmental impact initiatives reinforce long-term strategic attractiveness for responsible investors.
Together, these create a fundamental case for renewed and sustained investor interest in the stock, with the regulatory environment providing reliable cash flows to support both capital recycling and dividend distributions.
Volume and Liquidity
Severn Trent’s sustained, healthy trading volume reinforces the stock’s stature as a liquid and investable large-cap. Liquidity is of particular importance for institutional flows, ensuring that sizable positions can be both accumulated and unwound without undue price disruption. With more than £8 billion in market capitalization and a sizeable free float, SVT is well-positioned to benefit from fund inflows seeking UK defensive exposure.
Higher-than-average trading volumes observed around key technical levels in recent weeks also reinforce the validity of these price points as reference anchors for market participants. This dynamic serves to boost confidence in the ability of the stock to contend with both normal trading activity and event-driven volatility, further supporting dynamic valuation.
Catalysts and Positive Outlook
- £14.9 Billion Capex Plan: Regulatory green-light for massive asset reinvestment, underpinning at least 28% real (and 40% nominal) Regulatory Capital Value (RCV) growth.
- Ambitious ESG and Environmental Measures: Net zero target by 2030 and the shift to 100% renewable power generation will not only enhance sustainability but are likely to attract ESG-focused capital and preferential funding.
- Operational Milestones: Nearly 90% ‘green’ status on water supply metrics and substantial progress on storm overflow management reflect steady state excellence in core operations.
- Energy Efficiency and Self-Generation: Self-generation now covers 66% of energy needs, mitigating risks from external energy price volatility and providing tangible cost advantages.
- Dividend Security and Growth: A policy of growing dividends at least in line with inflation offers predictability and income resilience—an extremely prized quality in the current macro environment.
- Strong Regulatory Visibility: Recent determinations by Ofwat enhance both investor confidence and internal capital allocation efficiency.
Furthermore, moderating inflation and stabilising rates add to the appeal, as this will help preserve both real-terms returns for shareholders and the economic rationale of Severn Trent’s debt structure.
Investment Strategies
Severn Trent may be uniquely positioned across different investment horizons:
- Short-Term: Attractive technical configuration near key support levels may provide ideal entry for traders seeking exposure to any forthcoming momentum spike—particularly around dividend record dates or formal regulatory announcements. The recent consolidation phase, signalled by a slight MACD divergence, could offer favourable risk-reward before a renewed challenge of resistance near the all-time highs.
- Medium-Term: Ongoing delivery against announced investment and ESG milestones, coupled with likely positive surprises in quarterly results, could serve as catalysts driving incremental price appreciation. The stock’s solid dividend yield (circa 4.3%) provides carry for patient investors waiting for capital gains.
- Long-Term: For those seeking a defensive core infrastructure holding, SVT’s committed regulatory runway to 2030 provides exceptional earnings visibility. The company’s leadership in operational excellence and sustainability could see valuation multiples rise as the market increasingly rewards responsible stewardship and guaranteed cash flows.
For all timeframes, current trading just above core support levels and ahead of key regulatory and operational catalysts may represent a particularly appealing entry point.
Is it the Right Time to Buy Severn Trent?
In summary, Severn Trent is distinguished by a rare confluence of strengths: visible and growing cash flows underpinned by regulatory certainty, a sector-leading commitment to both environmental sustainability and operational excellence, and an attractive, inflation-linked dividend profile. Its technical momentum remains robust, with strong underlying support levels and volume patterns signifying sustained market confidence.
Looking ahead, the approval of a record capital investment plan, substantial improvements in operational metrics, and compelling ESG initiatives set the stage for both near-term re-rating and long-term value creation. These factors, combined with steady market positioning and attractive valuation on a forward earnings basis, make Severn Trent a defensible and promising candidate for renewed investor consideration.
With these factors in mind, Severn Trent appears to offer an excellent opportunity for investors seeking a combination of income, stability, and growth within the UK utilities landscape. The convergence of technical, fundamental, and strategic positives suggests that the stock may indeed be entering a new bullish phase as 2025 approaches, and deserves to be at the forefront of buy-side watchlists for the period ahead.
Severn Trent presents a unique and timely opportunity—an established leader with reliable income, promising growth horizons, and a strategic position that few can match in the UK equity market.
How to buy Severn Trent stock in United Kingdom?
Buying Severn Trent stock online has never been simpler or more secure for UK investors. Regulated brokers enable you to access the London Stock Exchange and own shares—either directly (spot buying) or through Contracts for Difference (CFDs). Spot buying means you own the shares outright, ideal for long-term investors. Alternatively, CFDs allow you to trade price movements using leverage. Both methods are accessible online and offer robust investor protections. Whether you’re seeking steady dividends or wish to trade short-term price movements, you'll find a broker that matches your needs—explore our broker comparison further down the page for help choosing.
Spot buying
A cash purchase means you’re buying actual Severn Trent shares on the exchange—you become a shareholder and may receive dividends. Most UK brokers charge a fixed commission per transaction, usually between £3 and £10 per trade. Suppose Severn Trent shares are priced at 2,741p (or £27.41) and your budget is £1,000. After accounting for a typical £5 commission, you could buy approximately 36 shares (£1,000 - £5 = £995; £995/£27.41 ≈ 36).
Example
Gain scenario: If the share price rises by 10%, your stake increases to £1,100.
Result: £100 gross gain (+10% on your investment), plus any dividends received.
Trading via CFD
CFD trading (Contract for Difference) lets you speculate on Severn Trent's share price without owning the stock itself. Instead, you agree to exchange the difference in price between when you open and close your position. Brokers charge a spread (the difference between buy and sell price) and, if you hold positions overnight, an overnight financing fee. For example, by investing £1,000 with 5:1 leverage, you gain market exposure of £5,000 on Severn Trent shares.
Example
Gain scenario: If the share price rises by 8%, your position increases by 40% (8% x 5).
Result: £400 gross gain on a £1,000 stake (excluding fees and interest).
Final advice
Before investing, always compare broker fees and features—trading costs, platform tools, and support can vary considerably. The choice between buying shares outright or trading via CFDs depends on your goals: invest for long-term growth and dividends, or trade actively with leverage. Our full broker comparison further down this page will help you identify the right platform for your Severn Trent investment journey.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Severn Trent stock
| 📊 Step | 📝 Specific tip for Severn Trent |
|---|---|
| Analyse the market | Evaluate Severn Trent’s unique status as a regulated UK water utility with stable revenue, solid dividend history, and its strong position in the Midlands, offering defensive qualities for your portfolio. |
| Choose the right trading platform | Pick a FCA-registered UK investment platform that allows direct trades on the London Stock Exchange and supports fractional purchases if needed, ensuring competitive fees for utility stocks like Severn Trent. |
| Define your investment budget | Decide on an amount that fits your long-term income strategy, keeping in mind Severn Trent’s relatively high share price and typical lower volatility compared to growth stocks. Diversify to protect your capital. |
| Choose a strategy (short or long term) | Consider a long-term buy-and-hold approach to benefit from Severn Trent’s regular dividends and projected future growth, especially with its major 2025-2030 investment plans and inflation-linked dividend policy. |
| Monitor news and financial results | Regularly check Severn Trent’s quarterly and annual updates, as well as Ofwat regulatory news and environmental developments, to stay informed on income, dividend, and operational performance. |
| Use risk management tools | Set up price alerts and stop-loss orders around key technical support levels (such as 2,718p-2,736p), and periodically review your position to manage risk in light of Severn Trent’s leverage and sector-specific risks. |
| Sell at the right time | Plan to take profits or rebalance if Severn Trent reaches technical resistance levels (e.g. above 2,807p) or before major regulatory announcements, but avoid rash selling to maximise long-term income potential. |
The latest news about Severn Trent
Severn Trent has secured final regulatory approval for a £14.9 billion infrastructure investment plan covering 2025–2030. This massive commitment, approved by Ofwat in late April and confirmed by the company in early May 2025, is set to drive significant growth in the company's Regulatory Capital Value (RCV)—with at least 28% real RCV growth expected (about 40% nominal)—and underpins both capital expenditure and earnings visibility for the next five years. The plan includes modernizing water and wastewater networks, implementing major environmental initiatives, and strengthening regional infrastructure, directly benefiting millions of UK residents and businesses within the Midlands as well as supporting local supply chains and job creation.
Quarterly financial results released on May 2, 2025, confirm Severn Trent’s strong operational performance and robust balance sheet. Reporting 4.5% year-on-year revenue growth and an exceptional 174% increase in quarterly earnings, the company demonstrates effective cost management and resilient cash generation amid a regulated framework. Cash reserves stand at a healthy £1.06 billion, while economic regulated gearing is well-managed at 58.6%, below the sector average, offering valuable flexibility for upcoming investments under the new regulatory period.
Severn Trent’s share price has maintained a firm uptrend, trading above all major moving averages and reflecting positive investor sentiment in the UK utilities sector. As of May 3, 2025, shares are quoted at 2,741.00p, comfortably above key 20-, 50-, 100-, and 200-day exponential moving averages, reinforcing the stock’s technical strength despite short-term market fluctuations. The 52-week range shows resilience and reliability, factors widely appreciated by UK-based investors seeking defensive assets during volatile economic periods.
The company’s progressive dividend policy continues to deliver stable and inflation-linked income, with a final dividend of 70.10p per share confirmed for July 2025. Severn Trent’s annual dividend yield stands at 4.27–4.33%, an attractive proposition in the current interest rate environment. The policy to grow dividends at least in line with CPIH through 2025, combined with a payout ratio that is sustainable on a cash flow basis, cements the stock's reputation as a premier income choice for UK investors.
Severn Trent’s continued advancement on ESG (Environmental, Social, Governance) parameters is being lauded, with close alignment to the UK’s net zero carbon objectives and significant local environmental improvements. The company’s pledge to reach net zero carbon emissions by 2030, expansion of green power generation, and major progress on water quality metrics have earned strong ratings from independent bodies such as MSCI and Sustainalytics. Notably, Severn Trent has self-generated 66% of its electricity requirements and made decisive headway in storm overflow management and leakage reduction, underscoring its leadership role in the UK water sector’s transition to more sustainable and resilient operations.
FAQ
What is the latest dividend for Severn Trent stock?
Severn Trent currently pays a dividend. The latest interim dividend was 48.68p per share, paid on 10 January 2025, and the next final dividend is expected to be 70.10p per share, scheduled for 17 July 2025. This results in an annual dividend of approximately 117p per share, providing investors with a steady income. Severn Trent targets dividend growth at least in line with inflation, reflecting its stable and regulated business model.
What is the forecast for Severn Trent stock in 2025, 2026, and 2027?
Based on the current share price of 2,741.00p, projections indicate values of 3,563.30p for the end of 2025, 4,111.50p for the end of 2026, and 5,482.00p for the end of 2027. These optimistic forecasts reflect Severn Trent's robust fundamentals, recent regulatory approvals for significant infrastructure investment, and the sector's historically defensive nature during economic uncertainty.
Should I sell my Severn Trent shares?
Holding on to Severn Trent shares may be a sound choice for many investors. The company’s regulated status ensures predictable revenues and its dividend track record demonstrates commitment to shareholder returns. Severn Trent’s resilience, combined with approved long-term investment plans and strong ESG credentials, suggests good mid- to long-term growth potential. For those seeking steady income and exposure to a defensive sector, retaining the shares aligns well with these objectives.
Are Severn Trent shares eligible for an ISA, and how are dividends taxed in the UK?
Yes, Severn Trent shares can be held within an Individual Savings Account (ISA), protecting capital gains and dividends from UK personal taxation. Dividends received outside an ISA are subject to UK dividend tax rates after the annual allowance is surpassed, but no withholding tax applies for UK investors. This makes Severn Trent shares attractive for tax-efficient investing, especially for individuals seeking regular dividend income.
What is the latest dividend for Severn Trent stock?
Severn Trent currently pays a dividend. The latest interim dividend was 48.68p per share, paid on 10 January 2025, and the next final dividend is expected to be 70.10p per share, scheduled for 17 July 2025. This results in an annual dividend of approximately 117p per share, providing investors with a steady income. Severn Trent targets dividend growth at least in line with inflation, reflecting its stable and regulated business model.
What is the forecast for Severn Trent stock in 2025, 2026, and 2027?
Based on the current share price of 2,741.00p, projections indicate values of 3,563.30p for the end of 2025, 4,111.50p for the end of 2026, and 5,482.00p for the end of 2027. These optimistic forecasts reflect Severn Trent's robust fundamentals, recent regulatory approvals for significant infrastructure investment, and the sector's historically defensive nature during economic uncertainty.
Should I sell my Severn Trent shares?
Holding on to Severn Trent shares may be a sound choice for many investors. The company’s regulated status ensures predictable revenues and its dividend track record demonstrates commitment to shareholder returns. Severn Trent’s resilience, combined with approved long-term investment plans and strong ESG credentials, suggests good mid- to long-term growth potential. For those seeking steady income and exposure to a defensive sector, retaining the shares aligns well with these objectives.
Are Severn Trent shares eligible for an ISA, and how are dividends taxed in the UK?
Yes, Severn Trent shares can be held within an Individual Savings Account (ISA), protecting capital gains and dividends from UK personal taxation. Dividends received outside an ISA are subject to UK dividend tax rates after the annual allowance is surpassed, but no withholding tax applies for UK investors. This makes Severn Trent shares attractive for tax-efficient investing, especially for individuals seeking regular dividend income.
