Entergy’s Texas unit keeps preferred payout steady, offering roughly 5.4% income for holders

Quarterly preferred dividend declared: what holders need to know

Entergy Texas, a regulated utility unit of Entergy (ETR), has declared a quarterly dividend on its Series A cumulative perpetual preferred stock. The company set the payment at $0.3359375 per share, with a payable date of January 15, 2026 and a record date of December 31, 2025. For people who own these preferred shares, the payment continues the steady income stream that preferreds are designed to deliver.

How the dates and payment actually work for owners

The record date of December 31, 2025 is the cut-off: investors who appear on the issuer’s shareholder register at the close of business that day are entitled to the dividend. The payment will be sent or credited on January 15, 2026. If you buy the shares after the record date, you will not receive this upcoming distribution.

Most brokers automatically process the payment and credit your account on the payable date. If your shares are held in a brokerage account that uses a different settlement chain, or if you hold physical certificates or direct-registration shares, allow a little extra time for processing. The transfer agent named in the company notice handles the actual payment mechanics.

What this means for income investors: yield, timing and tradability

The declared quarterly amount implies an annual cash dividend of $1.34375 per share. Preferreds from regulated utilities commonly have a $25 par value; using that base, the annual yield works out to about 5.38% (roughly 5.4%). That puts the issue squarely in the mid-single-digit yield band that many income investors seek from utility preferreds.

To estimate your expected income, multiply the number of shares you own by $0.3359375 to find the payment each quarter, then by four to annualize. Keep in mind that market price can move, so the cash yield based on price will differ from the nominal yield on par. If the preferred trades at a premium or discount to $25, the effective yield will be lower or higher accordingly.

Trading liquidity matters. Utility preferreds usually trade less frequently than common stock. If you need to sell, expect wider bid-ask spreads and sporadic volume, especially on smaller issues. That can make timing sales costly in a fast-moving rate environment.

Where the Series A fits in Entergy’s capital stack

Entergy Texas’s Series A preferred is a fixed-income-like instrument that sits above the company’s common equity but below its senior debt in the payment hierarchy. The shares are cumulative, which means missed payments accrue and must be paid later before any common dividends are resumed. That feature gives investors more protection than a non-cumulative preferred, but it is not the same safety as an investment-grade bond.

Entergy Texas operates as a regulated utility under the broader Entergy (ETR) umbrella. The parent’s credit health and regulatory outcomes in Texas influence the subsidiary’s ability to keep paying preferred dividends over time.

Market context and what to watch next

Preferred dividends from utilities generally move with interest-rate expectations and the sector’s regulatory outlook. In a stable rate environment, fixed payouts like this remain attractive to income buyers. If interest rates rise, preferreds can lose price appeal and trade down, pushing yields higher but market prices lower.

Investors should watch a few items going forward: Entergy’s earnings and cash flow at the parent and utility level, any regulatory decisions in Texas that affect allowed returns, and changes to the company’s credit ratings. A downgrade at the parent could pressure preferred prices even if the company continues to make payments. Conversely, steady regulatory revenue and stable cash flow tend to support preferred valuations.

Overall, this declaration keeps the status quo for holders: a predictable quarterly income stream with a mid-single-digit yield and the usual trade-offs of preferred shares—higher income than common stock but more sensitivity to rates and liquidity constraints.