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Reasons to Add Alliant Energy (LNT) to Your Portfolio Now

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Alliant Energy Corporation’s (LNT - Free Report) regular investments to add clean power generation assets to its generation portfolio, expansion of the customer base and strong liquidity make it a solid choice for investment in the utility space.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for 2022 and 2023 earnings per share reflects year-over-year growth of 6.8% and 3.6%, respectively.

Surprise History and Earnings Growth

Alliant Energy delivered an average earnings surprise of 1.6% in the last four quarters.

Alliant Energy’s long-term (three to five years) earnings growth is projected at 5.9%.

Return on Equity & Dividend Yield

Return on Equity (ROE) indicates how efficiently Alliant Energy is utilizing shareholders’ funds to generate returns. At present, Alliant Energy’s ROE is 11.02%, higher than the industry average of 10.2%.

Currently, Alliant Energy has a dividend yield of 3.1% compared with the Zacks S&P 500 composite’s 1.7%.

Regular Investments

Alliant Energy announced plans to invest substantially over the next four years to strengthen the electric and gas distribution networks as well as add natural gas and renewable assets to the generation portfolio. Alliant Energy has plans to strengthen electric and natural gas distribution systems as well as make regular investments to strengthen infrastructure. Alliant Energy has plans to invest $8.5 billion between 2023 and 2026.

The company is successfully completing major construction projects on time and at or below budget. A constructive regulatory environment will enable the company to recover its capital expenditures. Its strong and flexible investment plans will support an 8% base CAGR growth rate from 2022 through 2026.

Price Performance

Over the past 24 months, Alliant Energy’s shares have returned 9.5% compared with the industry’s 6.2% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks in the same industry include ALLETE Inc. (ALE - Free Report) , NiSource (NI - Free Report) and Pinnacle West Capital (PNW - Free Report) , each currently holding a Zacks Rank #2.

ALLETE, NiSource, and Pinnacle West Capital’s dividend yields are currently pegged at 4.01%, 3.41%, and 4.47%, respectively, which is better than industry yield of 3.18%.

The Zacks Consensus Estimate for 2022 earnings for ALLETE, NiSource and Pinnacle West Capital’s has moved up 0.3%, 0.7%, and 2%, respectively, in the past 60 days.

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