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Alliant Energy (LNT) Rewards Shareholders With 6.1% Dividend Hike
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Alliant Energy Corporation (LNT - Free Report) announced that its board of directors has approved a 6.1% increase in its quarterly dividend rate. The company has been paying dividends for 313 consecutive quarters since 1946. The new dividend rate will be 48 cents per share compared with the previous quarter’s 45.25 cents, payable on Feb 15, 2024, to stockholders of record as of Jan 31, 2024.
This increase resulted in an annualized dividend of $1.92 per share compared with the previous level of $1.81. Alliant Energy’s current dividend yield is 3.59%, higher than the Zacks S&P 500 Composite's average of 1.37%.
Can Alliant Energy Sustain Dividend Hikes?
Alliant Energy’s earnings prospects look attractive due to the ongoing additions to electric and natural gas customer volumes. Its geographic location and favorable regulatory developments bode well for the expansion of wind projects and long-term earnings growth. The company is currently targeting long-term annual earnings growth in the range of 5-7%.
LNT is also gaining from its planned cost reduction activities. The ongoing economic development in its service territories and increasing customer base are also creating fresh demand for utility services and boosting its performance.
Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network as well as add natural gas and renewable assets to its generation portfolio. It expects investments of $9.1 billion during 2024-2027. LNT’s strong and flexible investment plans will support an 8% base CAGR during the same period.
Alliant Energy continues to be the largest owner-operator of solar energy in Wisconsin. It has all solar sites and panels in control for its planned 1.1 gigawatts of utility-scale solar projects within the state by mid-2024.
LNT has the potential to expand and improve even more, which suggests that management will have sufficient funds to continue its shareholder-friendly activities in the future.
Legacy of Dividend Payment
Companies involved in utility services generally have stable operations and earnings. Consistent performance, regulated returns and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
In the past few months, WEC Energy Group (WEC - Free Report) , Global Water Resources (GWRS - Free Report) and Spire Inc. (SR - Free Report) have raised their quarterly dividend rate by 7%, 1% and 4.9%, respectively.
The Zacks Consensus Estimate for WEC Energy’s 2024 earnings is pegged at $4.90 per share, implying a year-over-year increase of 6.1%. WEC’s current dividend yield is 3.77%.
The Zacks Consensus Estimate for Global Water Resources’ 2024 earnings is pegged at 30 cents per share, implying a year-over-year increase of 3.5%. GWRS’ current dividend yield is 2.4%.
The Zacks Consensus Estimate for Spire’s fiscal 2024 earnings is pegged at $4.38 per share, implying a year-over-year increase of 8.2%. SR’s current dividend yield is 5.03%.
Price Performance
In the past three months, LNT’s shares have gained 0.3% compared with the industry’s rally of 7.2%.
Image Source: Zacks Investment Research
Zacks Rank
Alliant Energy currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
Alliant Energy (LNT) Rewards Shareholders With 6.1% Dividend Hike
Alliant Energy Corporation (LNT - Free Report) announced that its board of directors has approved a 6.1% increase in its quarterly dividend rate. The company has been paying dividends for 313 consecutive quarters since 1946. The new dividend rate will be 48 cents per share compared with the previous quarter’s 45.25 cents, payable on Feb 15, 2024, to stockholders of record as of Jan 31, 2024.
This increase resulted in an annualized dividend of $1.92 per share compared with the previous level of $1.81. Alliant Energy’s current dividend yield is 3.59%, higher than the Zacks S&P 500 Composite's average of 1.37%.
Can Alliant Energy Sustain Dividend Hikes?
Alliant Energy’s earnings prospects look attractive due to the ongoing additions to electric and natural gas customer volumes. Its geographic location and favorable regulatory developments bode well for the expansion of wind projects and long-term earnings growth. The company is currently targeting long-term annual earnings growth in the range of 5-7%.
LNT is also gaining from its planned cost reduction activities. The ongoing economic development in its service territories and increasing customer base are also creating fresh demand for utility services and boosting its performance.
Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network as well as add natural gas and renewable assets to its generation portfolio. It expects investments of $9.1 billion during 2024-2027. LNT’s strong and flexible investment plans will support an 8% base CAGR during the same period.
Alliant Energy continues to be the largest owner-operator of solar energy in Wisconsin. It has all solar sites and panels in control for its planned 1.1 gigawatts of utility-scale solar projects within the state by mid-2024.
LNT has the potential to expand and improve even more, which suggests that management will have sufficient funds to continue its shareholder-friendly activities in the future.
Legacy of Dividend Payment
Companies involved in utility services generally have stable operations and earnings. Consistent performance, regulated returns and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
In the past few months, WEC Energy Group (WEC - Free Report) , Global Water Resources (GWRS - Free Report) and Spire Inc. (SR - Free Report) have raised their quarterly dividend rate by 7%, 1% and 4.9%, respectively.
The Zacks Consensus Estimate for WEC Energy’s 2024 earnings is pegged at $4.90 per share, implying a year-over-year increase of 6.1%. WEC’s current dividend yield is 3.77%.
The Zacks Consensus Estimate for Global Water Resources’ 2024 earnings is pegged at 30 cents per share, implying a year-over-year increase of 3.5%. GWRS’ current dividend yield is 2.4%.
The Zacks Consensus Estimate for Spire’s fiscal 2024 earnings is pegged at $4.38 per share, implying a year-over-year increase of 8.2%. SR’s current dividend yield is 5.03%.
Price Performance
In the past three months, LNT’s shares have gained 0.3% compared with the industry’s rally of 7.2%.
Image Source: Zacks Investment Research
Zacks Rank
Alliant Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.