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WEC Energy (WEC) Declares 5.1% Hike in Quarterly Dividend
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WEC Energy Group, Inc.’s (WEC - Free Report) board of directors approved a 5.1% increase in its quarterly cash dividend. The revised dividend of 52 cents per share will be distributed on Mar 1, 2017 to shareholders of record as of Feb 14.
The latest hike marks an increase of 2.5 cents from the prior payout of 49.5 cents. The aforementioned increase in the quarterly dividend is attributable to WEC Energy’s financial strength and consistently robust performance. The new annualized dividend amounts to $2.08 per share, up from $1.98 paid earlier, resulting in a dividend yield of 3.55%.
WEC Energy Group’smanagement has been raising dividends regularly during the last 14 years. Notably, this marks the 298th consecutive quarter of a dividend payment. WEC Energy projects annual dividends to grow in tandem with earnings and at a payout ratio of 65–70%.
Factors Driving WEC Energy
The company intends to achieve long-term net financial earnings growth of 5–7% annually on the back of its investments in infrastructure projects, a gradual improvement in the economy of its service areas and synergies from the Integrys acquisition. Its regulated operations contribute 99% to the company’s bottom line, in turn providing ample visibility on its future performance.
Moreover, the company plans to invest nearly $9.0–$9.5 billion over the 2016–2020 timeframe. This includes allocations of $4,989 million for Gas Delivery, $2,459 million for Electric Delivery and $1,718 million for Generation. Such systematic investments in regulated operations will drive bottom-line growth in the long run.
Further, economic condition in WEC Energy’s service territories is improving steadily, thereby boosting residential as well as industrial and commercial demand. As a result of the economic improvement, the company continues to witness customer growth, with Wisconsin utilities recording an increase of 7,000 in electric customers and 13,000 in natural gas customers. WEC Energy’s natural gas utilities in Illinois, Michigan and Minnesota are serving approximately 18,000 more customers than the year-ago figure.
Price Movement
WEC Energy has outperformed the Zacks Categorized Utility-Electric Power industry over the last 12 months. Shares of the company improved 11.6%, compared to the industry’s 9.4% gain.
The company’s outperformance was primarily driven by above-average earnings per share and steady dividend growth, a strong financial position, a constructive regulatory environment and a proven management team.
Further, with the integration of the Integrys Energy acquisition, WEC Energy has become one of the 15 largest investor-owned utilities and the eighth-largest natural gas distribution company in the U.S. Post acquisition, WEC Energy has a 60% ownership interest in American Transmission Company, one of the largest transmission companies of the U.S.
Hawaiian Electric’s 2017 estimates inched up 0.6% to $1.80 from $1.79 over the last 60 days. Its shares gained 18.6% in the last 12 months, outperforming the broader industry.
Ameren’s 2017 estimates inched up 0.4% to $2.77 from $2.76 over the last 60 days. Its shares gained 22.9% in the last 12 months, outperforming the broader industry.
Exelon’s 2017 estimates inched up 1.6% to $2.62 from $2.58 over the last 60 days. Its shares gained 30.3% in the last 12 months, outperforming the broader industry.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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WEC Energy (WEC) Declares 5.1% Hike in Quarterly Dividend
WEC Energy Group, Inc.’s (WEC - Free Report) board of directors approved a 5.1% increase in its quarterly cash dividend. The revised dividend of 52 cents per share will be distributed on Mar 1, 2017 to shareholders of record as of Feb 14.
The latest hike marks an increase of 2.5 cents from the prior payout of 49.5 cents. The aforementioned increase in the quarterly dividend is attributable to WEC Energy’s financial strength and consistently robust performance. The new annualized dividend amounts to $2.08 per share, up from $1.98 paid earlier, resulting in a dividend yield of 3.55%.
WEC Energy Group’smanagement has been raising dividends regularly during the last 14 years. Notably, this marks the 298th consecutive quarter of a dividend payment. WEC Energy projects annual dividends to grow in tandem with earnings and at a payout ratio of 65–70%.
Factors Driving WEC Energy
The company intends to achieve long-term net financial earnings growth of 5–7% annually on the back of its investments in infrastructure projects, a gradual improvement in the economy of its service areas and synergies from the Integrys acquisition. Its regulated operations contribute 99% to the company’s bottom line, in turn providing ample visibility on its future performance.
Moreover, the company plans to invest nearly $9.0–$9.5 billion over the 2016–2020 timeframe. This includes allocations of $4,989 million for Gas Delivery, $2,459 million for Electric Delivery and $1,718 million for Generation. Such systematic investments in regulated operations will drive bottom-line growth in the long run.
Further, economic condition in WEC Energy’s service territories is improving steadily, thereby boosting residential as well as industrial and commercial demand. As a result of the economic improvement, the company continues to witness customer growth, with Wisconsin utilities recording an increase of 7,000 in electric customers and 13,000 in natural gas customers. WEC Energy’s natural gas utilities in Illinois, Michigan and Minnesota are serving approximately 18,000 more customers than the year-ago figure.
Price Movement
WEC Energy has outperformed the Zacks Categorized Utility-Electric Power industry over the last 12 months. Shares of the company improved 11.6%, compared to the industry’s 9.4% gain.
The company’s outperformance was primarily driven by above-average earnings per share and steady dividend growth, a strong financial position, a constructive regulatory environment and a proven management team.
Further, with the integration of the Integrys Energy acquisition, WEC Energy has become one of the 15 largest investor-owned utilities and the eighth-largest natural gas distribution company in the U.S. Post acquisition, WEC Energy has a 60% ownership interest in American Transmission Company, one of the largest transmission companies of the U.S.
Zacks Rank & Other Key Picks
WEC Energy carries a Zacks Rank #2 (Buy). Few better-ranked stocks in the same space include Hawaiian Electric Industries, Inc. (HE - Free Report) , Ameren Corporation (AEE - Free Report) and Exelon Corporation (EXC - Free Report) . All the stocks sport a Zack Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawaiian Electric’s 2017 estimates inched up 0.6% to $1.80 from $1.79 over the last 60 days. Its shares gained 18.6% in the last 12 months, outperforming the broader industry.
Ameren’s 2017 estimates inched up 0.4% to $2.77 from $2.76 over the last 60 days. Its shares gained 22.9% in the last 12 months, outperforming the broader industry.
Exelon’s 2017 estimates inched up 1.6% to $2.62 from $2.58 over the last 60 days. Its shares gained 30.3% in the last 12 months, outperforming the broader industry.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>