Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Diversified utility ALLETE Inc. (ALE - Snapshot Report) announced that its board of directors has approved an increase in the quarterly dividend rate by 1.5 cents. The revised quarterly dividend will be 47.5 cents payable on Mar 1, 2013, to shareholders of record at the close of business on Feb 15, 2013.

The annualized dividend rate of the company will come to $1.90, up 3.3% from the prior rate of $1.84. The current annualized dividend yield of the company is 4.3%. The increase in the distributable income speaks of the company’s successfully executed investment growth strategy.

ALLETE Inc. is working consistently to develop its infrastructure and to provide better services to its customers. The initiatives taken by ALLETE are yielding positive results, enabling the company to share more with shareholders. The previous hike in the quarterly dividend rate was on Jan 12, when the rate was raised to 46 cents from 44.5 cents.

Cash flow from operating activities at the end of the first nine months of 2012 was $195.5 million versus $185.1 million in the comparable period last year. During the first nine months the company utilized $52.2 million for dividend payouts.

The long-term objective of the company is to ensure earnings growth of 5% per year (2010 being the base year) and to maintain a competitive dividend payout. We believe the initiatives taken by ALLETE to develop the transmission system and generate power from renewable sources will provide adequate returns enabling the company to fulfill its objectives.

The shareholders too reacted positively to the news. The shares gained 1.02% ending at $44.51 per share at the end of Jan 23.

ALLETE Inc. currently has a short-term a Zacks Rank #3 (Hold). Besides ALLETE, a few other utility operators have also raised their quarterly dividend rates in recent months. While ONEOK Inc. (OKE - Analyst Report) increased its quarterly dividend by 9%, Dominion Resources Inc. (D - Snapshot Report) and OGE Energy Corporation (OGE - Analyst Report) raised it by 6.6% and 6.37%, respectively.

Minnesota-based ALLETE, Inc. is a diversified utility having operations in Florida, North Dakota and Wisconsin. The company was founded in 1906. With a market capitalization of $1.68 billion, the company has 1,315 full-time employees.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RAMBUS INC RMBS 12.56 +6.53%
DIXIE GROUP DXYN 15.46 +5.31%
BOFL HOLDING BOFI 85.39 +5.08%
NETFLIX INC NFLX 346.93 +4.68%
E COMMERCE C DANG 12.58 +4.14%