Alliant Energy Corp's Dividend Analysis
An in-depth look at the company's dividend performance and sustainability
Alliant Energy Corp (NASDAQ:LNT) recently announced a dividend of $0.45 per share, payable on 2023-11-15, with the ex-dividend date set for 2023-10-30. 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 Corps dividend performance and assess its sustainability.
What Does Alliant Energy Corp Do?
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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 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. Dividends are currently distributed on a quarterly basis. Alliant Energy Corp has increased its dividend each year since 2003, earning it the title of a dividend achiever, an honor given to companies that have increased their dividend each year for at least the past 20 years.
Breaking Down Alliant Energy Corp's Dividend Yield and Growth
As of today, Alliant Energy Corp currently has a 12-month trailing dividend yield of 3.65% and a 12-month forward dividend yield of 3.70%. This suggests 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%. Extended to a five-year horizon, this rate decreased to 6.30% per year. Over the past decade, Alliant Energy Corp's annual dividends per share growth rate stands at 6.80%. Based on Alliant Energy Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Alliant Energy Corp stock as of today is approximately 4.95%.
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. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Alliant Energy Corp's dividend payout ratio is 0.67.
Alliant Energy Corp's profitability rank of 7 out of 10 as of 2023-06-30 suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
Alliant Energy Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Alliant Energy Corp's revenue has increased by approximately 3.10% per year on average, a rate that underperforms approximately 72.22% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Alliant Energy Corp's earnings increased by approximately 5.40% per year on average, a rate that underperforms approximately 50% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 6.50% underperforms approximately 47.21% of global competitors.
Next Steps
In conclusion, Alliant Energy Corp's consistent dividend payments, steady growth rate, manageable payout ratio, and strong profitability and growth metrics make it an attractive option for dividend investors. However, the company's underperformance in revenue and earnings growth compared to global competitors warrants caution. Investors should continue to monitor these metrics and consider their overall investment strategy and risk tolerance before making a decision. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
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.
This article first appeared on GuruFocus.
