Exceptional Dividend Boon
Alliant Energy Corporation LNT has been a beacon of consistency, rewarding its shareholders with a 6.1% surge in its quarterly dividend rate. The sought-after company has been steadfastly paying dividends for 313 consecutive quarters since 1946, instilling a sense of trust and dependability in investors. Harnessing this momentum, the new dividend rate of 48 cents per share, compared with the previous quarter’s 45.25 cents, is due to be disbursed on Feb 15, 2024, to stockholders of record as of Jan 31, 2024.
This hike reflects an annualized dividend of $1.92 per share, up from the previous $1.81. Notably, Alliant Energy’s current dividend yield stands at a commendable 3.59%, leaving the Zacks S&P 500 Composite’s average of 1.37% trailing in its wake.
Favorable Prospects for Sustained Growth
Alliant Energy exhibits promising earnings prospects, propelled by the ongoing surge in electric and natural gas customer volumes. Its strategic geographic positioning and favorable regulatory landscape set the stage for the expansion of wind projects and long-term earnings growth. Confident in its trajectory, the company has set its sights on achieving a long-term annual earnings growth in the robust range of 5-7%.
Apart from scaling up its renewable energy portfolio, Alliant Energy is poised to benefit from planned cost reduction activities. The company’s service territories are experiencing sustained economic development and a surge in the customer base, fueling fresh demand for utility services and augmenting its performance.
The company’s blueprint entails substantial investments over the next four years to fortify the electric and gas distribution network, in addition to adding natural gas and renewable assets to its generation portfolio. This ambitious plan involves an investment of $9.1 billion during 2024-2027, priming Alliant Energy for an impressive 8% base CAGR during the same time frame.
Not content to rest on its laurels, Alliant Energy continues to retain its position as the largest owner-operator of solar energy in Wisconsin. Its control over all solar sites and panels, in line with its planned 1.1 gigawatts of utility-scale solar projects within the state by mid-2024, heralds a bright, sustainable future.
Undoubtedly, Alliant Energy’s potential for further expansion and improvement highlights management’s ability to continue its shareholder-friendly activities down the line.
Legacy of Dividend Payment
Entities involved in utility services traditionally boast stable operations and earnings. The commendable track record of consistent performance, regulated returns, and the capacity to generate cash flows empower utilities to fulfill their commitment of rewarding shareholders with regular dividends.
This trend is evident from the recent moves of industry peers like WEC Energy Group WEC, Global Water Resources GWRS, and Spire Inc. SR, which have all increased their quarterly dividend rates. These include increases of 7%, 1%, and 4.9%, respectively.
Furthermore, underlying WEC Energy’s current dividend yield of 3.77% is a Zacks Consensus Estimate for 2024 earnings pegged at $4.90 per share, signifying a 6.1% year-over-year increase. GWRS and SR also paint a similar picture, with Zacks Consensus Estimates for 2024 earnings revealing a growth of 3.5% and 8.2% year-over-year, respectively.
Price Performance and Zacks Rank
Charting its course, Alliant Energy’s shares have witnessed a 0.3% increase in the past three months, though it lags behind the industry’s robust rally of 7.2%.
The broader context is equally pertinent in this regard as the industry has boomed in the past three months, affirming its robust performance and underpinning the potential for sustained dividends.
At present, Alliant Energy carries a Zacks Rank #4 (Sell), a position reflective of its trajectory and potential for further improvement.
In Conclusion
Indeed, Alliant Energy’s recent dividend enrichment reinforces its commitment to its shareholders, instilling confidence and engendering investor loyalty in a landscape replete with opportunities and challenges. With a focus on sustainable growth, the company’s strides and strategic positioning deliver profound impact and solidify its promise as a prudent investment prospect.
As shareholders revel in the delight of receiving heightened dividends, the trajectory of Alliant Energy’s growth and prospects serve as a testament to the vitality of the energy sector.
Sources:
Zacks Investment Research: Industry Ranking
Zacks Investment Research: Alliant Energy Corporation (LNT) Dividend Hike
