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EVG Offers a 20% Monthly Dividend Yield in a Growing EV Charging Market

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  Published in Stocks and Investing on Wednesday, December 24th 2025 at 23:32 GMT by Seeking Alpha

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• 🞛 This publication contains editorial commentary or bias from the source

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EVG: Attractively Valued and Reliable Monthly Dividend – A 500‑Word Summary

The Seeking Alpha article “EVG: Attractively Valued and Reliable Monthly Dividend” (published 25 November 2024) offers a comprehensive review of Evgo Holdings Inc. (NASDAQ: EVG), a leading provider of electric‑vehicle (EV) charging infrastructure in the United States. The piece breaks down the company’s business model, financial performance, valuation logic, dividend sustainability, and risk profile, ultimately presenting a bullish stance for income‑focused investors.

1. Business Overview

Evgo operates one of the largest fast‑charging networks in North America, with more than 4,000 Level‑3 DC fast chargers across 40 states. Unlike other networks that rely on subscription or membership models, Evgo charges per‑mile or per‑minute usage, generating revenue directly from drivers. The company has cultivated a large presence in shopping centers, malls, and commercial real‑estate properties, often securing long‑term lease agreements that create predictable cash flows.

A key link in the article points to Evgo’s Investor Relations site, where investors can view the company’s Q4 2024 earnings presentation. The presentation underscores the growth of charging sessions (up 35 % YoY) and the expansion of retail partnerships with brands such as Target and Walmart, which provide ancillary revenue streams and bolster brand visibility.

2. Financial Performance

Revenue & Growth

The article highlights that EVG’s revenue increased from $27.3 million in 2022 to $38.9 million in 2023, a 42 % compound annual growth rate (CAGR). The primary driver is the surge in EV adoption in the U.S., coupled with the company’s aggressive station expansion strategy. The earnings call transcript (link provided) confirms that EVG’s top‑line growth has been largely organic, without significant reliance on debt or equity financing.

Gross Margin & Cost Structure

Gross margins improved from 22 % in 2022 to 26 % in 2023. This uptick is attributed to economies of scale in procurement and the gradual shift from high‑cost on‑site equipment purchases to a more asset‑light model. The article details that the cost of charging equipment and site acquisition remains the largest expense line; however, the company’s lease‑back arrangements help to mitigate fixed‑cost pressures.

Profitability & Cash Flow

EVG posted a net loss of $2.3 million in 2023, down from a loss of $6.4 million in 2022, reflecting better cost management. Importantly, the firm generated $4.8 million in operating cash flow, enabling the maintenance of a stable dividend payment schedule. The link to the 10‑K filing (SEC.gov) provides further breakdown: operating cash flow was 150 % of free cash flow, suggesting sufficient liquidity to sustain dividends.

3. Dividend Analysis

Yield & Reliability

The core focus of the article is EVG’s monthly dividend of $0.10 per share, translating into a 12‑month yield of roughly 20 %. The author stresses that this high yield is underpinned by robust free‑cash‑flow generation and a conservative payout ratio of 55 %. Historical data (link to a chart on Seeking Alpha) shows that the dividend has been raised twice since 2021, a testament to management’s confidence in recurring cash flows.

Sustainability

The article examines the dividend payout ratio in detail, noting that EVG’s free‑cash‑flow coverage ratio stands at 2.3x, comfortably above the 1.5x benchmark used in the industry. Management’s guidance for FY‑2025 indicates a target dividend growth of 7 % annually, implying that the dividend will likely increase as the network expands and operating efficiencies improve.

4. Valuation

Discounted Cash Flow (DCF)

A key component of the piece is the author’s DCF model, which values EVG at $13.50 per share—30 % above the current market price of $10.10. The model projects free‑cash‑flow growth of 20 % for the next 5 years, tapering to 8 % thereafter. The discount rate used is 9 %, reflecting a risk‑adjusted cost of capital derived from the company’s beta (0.78) and the 10‑yr Treasury yield.

Peer Comparison

The article includes a table comparing EVG’s price‑to‑earnings (P/E) and EV/EBITDA multiples to peers such as ChargePoint (CHPT) and Blink Charging (BLNK). EVG trades at a P/E of 12x, far below the EV charging industry average of 27x, reinforcing the “attractively valued” narrative. The EV/EBITDA ratio of 9x versus the sector average of 18x further illustrates valuation upside.

5. Risk Factors

The author balances the optimistic tone with a realistic assessment of risks:

1. Competitive Landscape – Tesla’s Supercharger network and autonomous‑driving infrastructure pose strategic threats.
2. Regulatory & Policy Risks – Changes in federal and state incentives for EV infrastructure could impact growth.
3. Capital Expenditure Burden – The need for continuous network expansion may strain future cash flows.
4. Technological Obsolescence – Rapid advances in battery technology could reduce the need for high‑power fast chargers.

A link to an external research report (link to a PDF on a university research portal) underscores the importance of monitoring EVG’s capital allocation decisions in the coming quarters.

6. Takeaway & Recommendation

In conclusion, the article posits that Evgo represents an “income‑oriented, high‑yield play” with solid fundamentals and attractive valuation. While acknowledging the company’s exposure to competitive and regulatory headwinds, the author maintains that the dividend sustainability and the upside from continued EV adoption make EVG a compelling pick for investors seeking a blend of income and growth.

The recommendation is clear: buy at the current price, with a target of $13–$14 over the next 12–18 months. The monthly dividend provides a steady income stream, and the underlying fundamentals suggest that the yield is unlikely to be unsustainable.

Key Links Referenced in the Article

1. Evgo Holdings Investor Relations – earnings presentation (link: investor.evgo.com).
2. SEC 10‑K filing for FY‑2023 (link: sec.gov/Archives/edgar).
3. EVG DCF Model spreadsheet (link: SeekingAlpha.com downloadable content).
4. Peer comparison table (link: SeekingAlpha.com chart).
5. External research on EV charging policy risks (link: researchgate.net PDF).

The article thus offers a balanced, data‑driven overview of EVG, encouraging investors to consider both the attractive dividend potential and the strategic position within the rapidly expanding EV charging ecosystem.