Ameren Corp's Dividend Analysis
Delving Into Ameren Corp's Dividend Payouts and Financial Health
Ameren Corp (NYSE:AEE) recently announced a dividend of $0.67 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-12. 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 Ameren Corps dividend performance and assess its sustainability.
What Does Ameren Corp Do?
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Ameren Corp operates rate-regulated generation, transmission, and distribution networks that deliver electricity and natural gas in Missouri and Illinois. It serves more than 2.4 million electricity customers and more than 900,000 natural gas customers, making it a significant player in the utilities sector.
A Glimpse at Ameren Corp's Dividend History
Ameren Corp has maintained a consistent dividend payment record since 1984, distributing dividends quarterly. The company has also demonstrated a commitment to increasing its dividend each year since 2009, earning it the title of a dividend achiever.
This distinction is reserved for companies that have consistently raised their dividends annually for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ameren Corp's Dividend Yield and Growth
Ameren Corp currently boasts a 12-month trailing dividend yield of 3.45% and a forward dividend yield of 3.67%, indicating an anticipated increase in dividend payments over the next year. Over the past three years, Ameren Corp's annual dividend growth rate was 8.00%, which slows to 6.70% over a five-year period and stands at 4.70% over the past decade.
Considering Ameren Corp's dividend yield and five-year growth rate, the 5-year yield on cost for Ameren Corp stock is approximately 4.77%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a key indicator of a dividend's sustainability. Ameren Corp's ratio stands at 0.60 as of 2023-12-31, suggesting a balance between distributing earnings as dividends and retaining funds for growth and stability. Ameren Corp's profitability rank is a robust 7 out of 10, reflecting good profitability prospects compared to peers. Consistent positive net income over the past decade further supports the company's financial health.
Growth Metrics: The Future Outlook
Ameren Corp's growth rank of 7 out of 10 indicates a strong growth trajectory. The company's revenue per share and 3-year revenue growth rate show a solid revenue model, with an average annual increase of 6.90%. However, this rate slightly underperforms approximately 55.62% of global competitors.
Additionally, Ameren Corp's 3-year EPS growth rate of 6.30% per year and a 5-year EBITDA growth rate of 5.20% are moderate when compared with the global competition. These figures suggest there is room for improvement in the company's growth metrics.
Next Steps
With a history of consistent dividend payments and a reasonable payout ratio, Ameren Corp stands as a potentially attractive option for income-focused investors. The company's solid profitability rank and decent growth metrics offer some assurance of continued dividend sustainability. However, as with any investment, it is crucial to consider both the opportunities and the risks involved. Investors may want to keep an eye on industry trends, regulatory changes, and Ameren Corp's strategic initiatives to navigate future prospects.
For investors seeking to find similar investment opportunities, GuruFocus Premium offers tools such as the High Dividend Yield Screener to discover high-dividend yield stocks.
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.
