Understanding the Value of Alliant Energy Corp's Dividend Commitment
Alliant Energy Corp (LNT, Financial) recently announced a dividend of $0.48 per share, payable on 2024-02-15, with the ex-dividend date set for 2024-01-30. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Alliant Energy Corp's dividend performance and assess its sustainability.
What Does Alliant Energy Corp Do?
Alliant Energy Corp is the parent of two regulated utilities, Interstate Power and Light and Wisconsin Power and Light, serving nearly 985,000 electric customers and 425,000 natural gas-only customers. Both subsidiaries engage in the generation and distribution of electricity and the distribution and transportation of natural gas. Alliant Energy also owns a 16% interest in American Transmission Co.
A Glimpse at Alliant Energy Corp's Dividend History
Alliant Energy Corp has maintained a consistent dividend payment record since 1988, distributing dividends on a quarterly basis. It has increased its dividend each year since 2003, earning the status of a dividend achiever, a distinction given to companies with at least 21 consecutive years of dividend increases.
Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Alliant Energy Corp's Dividend Yield and Growth
Alliant Energy Corp currently has a trailing dividend yield of 3.70% and a forward dividend yield of 3.93%. This indicates an expectation of increased dividend payments over the next 12 months. Over the past three years, Alliant Energy Corp's annual dividend growth rate was 6.40%, which decreased slightly to 6.30% per year over a five-year span, and stands at 6.80% over the past decade.
Considering Alliant Energy Corp's dividend yield and five-year growth rate, the 5-year yield on cost for Alliant Energy Corp stock is approximately 5.02%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a key indicator of dividend sustainability. As of 2023-09-30, Alliant Energy Corp's payout ratio is 0.65, suggesting a balanced approach to dividend distribution and earnings retention. Additionally, the company's profitability rank of 7 out of 10, combined with a decade of positive net income, points to solid profitability prospects.
Growth Metrics: The Future Outlook
Alliant Energy Corp's growth rank of 7 out of 10 indicates a strong growth trajectory. However, its 3.10% annual revenue growth rate underperforms 73.05% of global competitors. The 3-year EPS growth rate of 8.00% also underperforms 40.73% of global competitors. Lastly, a 5-year EBITDA growth rate of 8.00% underperforms 39.2% of global peers, suggesting mixed performance in growth metrics.
Next Steps for Investors
In conclusion, Alliant Energy Corp's consistent dividend payments, growth rate, and manageable payout ratio reflect a company committed to providing shareholder value. Its profitability rank underscores a robust financial position, although growth metrics present a nuanced picture with areas for improvement. Investors considering Alliant Energy Corp for its dividend prospects should weigh these factors, examining how the company's strategic initiatives might address growth challenges while maintaining its dividend achiever status. For those seeking high-dividend yield investments, GuruFocus Premium offers tools like the High Dividend Yield Screener to discover potential opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
