Insights into the Upcoming Dividend Payment and Financial Health
WEC Energy Group Inc (WEC, Financial) recently announced a dividend of $0.84 per share, payable on 2024-06-01, with the ex-dividend date set for 2024-05-13. 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 WEC Energy Group Inc's dividend performance and assess its sustainability.
What Does WEC Energy Group Inc Do?
WEC Energy Group's electric and gas utility businesses serve electric and gas customers in Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 48% electric generation and distribution, 36% gas distribution, 10% electric transmission, and 6% unregulated renewable energy.
A Glimpse at WEC Energy Group Inc's Dividend History
WEC Energy Group Inc has maintained a consistent dividend payment record since 1987, distributing dividends on a quarterly basis. The company has increased its dividend each year since 2004, earning it the status of a dividend achiever, a distinction awarded to companies that have increased their dividend annually for at least the past 20 years.
Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down WEC Energy Group Inc's Dividend Yield and Growth
As of today, WEC Energy Group Inc currently has a 12-month trailing dividend yield of 3.72% and a 12-month forward dividend yield of 3.91%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, WEC Energy Group Inc's annual dividend growth rate was 7.20%. This rate remained consistent over a five-year horizon, and over the past decade, the annual dividends per share growth rate stands at 8.20%.
Based on WEC Energy Group Inc's dividend yield and five-year growth rate, the 5-year yield on cost of WEC Energy Group Inc stock as of today is approximately 5.27%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. As of 2024-03-31, WEC Energy Group Inc's dividend payout ratio is 0.64, suggesting a balance between retaining earnings for growth and rewarding shareholders.
WEC Energy Group Inc's profitability rank of 8 out of 10 as of 2024-03-31, indicates good profitability prospects. The company has reported positive net income for each of the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. WEC Energy Group Inc's growth rank of 8 out of 10 suggests good growth prospects relative to its competitors. Its revenue per share and 3-year revenue growth rate of approximately 7.20% per year on average, although underperforming approximately 56.85% of global competitors, still indicates a strong revenue model.
The company's 3-year EPS growth rate of approximately 6.80% per year on average and a 5-year EBITDA growth rate of 7.30%, though underperforming some global competitors, still support a positive outlook for sustaining dividends.
Conclusion
Considering WEC Energy Group Inc's consistent dividend payments, robust dividend growth rate, balanced payout ratio, strong profitability, and solid growth metrics, the company's dividend appears sustainable in the foreseeable future. Investors seeking dividend growth stocks might find WEC Energy Group Inc an attractive option. For more detailed analysis and stock screening, consider exploring the High Dividend Yield Screener available to GuruFocus Premium users.
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.
