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Here's Why You Should Add Ameren to Your Portfolio Right Now

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Key Takeaways

  • AEE is investing heavily in clean energy and is adding large-scale wind and solar projects.
  • AEE's 2025 earnings estimates rose 0.8%, with revenues projected to grow 19.12% y/y.
  • AEE plans billions in infrastructure spending and raised its annual dividend in 12 straight years.

Ameren Corporation (AEE - Free Report) gains from continuing capital Investments, cost management and a focus on producing more electricity from clean sources. The company is boosting its long-term growth by investing heavily in clean energy infrastructure, including large-scale wind and solar projects.

Let us 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 Projection & Surprise History

The Zacks Consensus Estimate for 2025 earnings has moved up 0.80% in the past 60 days to $5.01 per share. Revenue estimates for 2025 of $9.08 billion imply year-over-year growth of 19.12%.
 
Ameren has missed earnings estimates in two quarters of the last four reported quarters and has beaten the same in the other two quarters, resulting in an average positive earnings surprise 0.22%.

Stable Investments

Ameren has invested $3.09 billion in the first nine months of 2025 to strengthen its infrastructure and improve customer service. AEE plans to invest $26.3 billion between 2025 and 2029.
 
The company will benefit from the decline in interest rate to 3.50-3.75%, which will lower capital servicing expenses and boost margins.

Return on Equity (ROE)

ROE indicates how efficiently a company is utilizing shareholders’ funds in the business to generate returns. At present, AEE’s ROE is 10.29%, higher than the industry average of 9.60%, which indicates that the company is utilizing its funds more effectively than its industry peers.

Dividend

Ameren has a dividend yield of 2.88% versus the Zacks S&P 500 composite’s average of 1.39%. In February 2025, Ameren increased its quarterly dividend 6% and thus rewarded its shareholders with an increasing dividend rate for the past 12 consecutive years.

Price Performance

In one year, the stock has gained 10.9% compared with the industry’s 19.3% growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Utilities sector are The AES Corporation (AES - Free Report) , Dominion Energy, Inc. (D - Free Report) and NiSource Inc. (NI - Free Report) , each carrying a Zacks Rank #2.

The long-term (three to five years) earnings growth rates of The AES Corporation, Dominion Energy and NiSource are projected at 11.17%, 10.26% and 7.93%, respectively. The AES Corporation, Dominion Energy and NiSource delivered earnings surprises of 14.68%, 12.72%, and 3.23%, respectively, on average, in the last four quarters. 

The dividend yields for The AES Corporation, Dominion Energy and NiSource are projected at 5.20%, 4.49%, and 2.73%, respectively.

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