low - Electric utility demand is non-discretionary with 60% residential/commercial mix providing stability. Industrial load (~20% of sales) has modest cyclical exposure through manufacturing customers, but overall load growth correlates weakly with GDP. Weather drives more quarterly variance than economic cycles. Recession scenarios show 1-3% demand decline historically, manageable through cost controls.

High sensitivity through two channels: (1) Financing costs - $10B debt balance means rising rates increase interest expense on refinancings and new debt to fund $2.3B annual capex, though partially offset by higher allowed ROE in rate cases using updated capital costs. (2) Valuation compression - as a 3.5% dividend yielding stock, Evergy trades inversely to 10-year Treasury yields; 100bps rise in 10-year typically compresses utility P/E multiples by 1-2 turns as investors rotate from dividend stocks to bonds. Current 1.43x debt/equity and BBB+ credit rating provide adequate financial flexibility but limit tolerance for rate increases.

dividend - Evergy attracts income-focused investors seeking stable 3.5% dividend yield with 6-7% annual dividend growth target. The regulated utility model provides predictable earnings and cash flows, appealing to conservative portfolios, pension funds, and retirees. Limited growth upside (6-8% EPS CAGR guidance) makes it less attractive to growth investors. Recent 23.6% one-year return reflects multiple expansion as rates stabilized, but long-term returns driven by dividend yield plus modest earnings growth.