LNT - Alliant Energy: Now Is The Time To Buy This Future Dividend Aristocrat

2024-04-05 07:00:00 ET

Summary

• Earlier this year, Alliant Energy delivered what will be its 21st consecutive year of dividend growth to shareholders via a 6.1% payout raise.
• The company came up short of the analyst consensus for both operating revenue and non-GAAP EPS, but growth prospects remain intact.
• Alliant Energy's issuer rating is A- from S&P on a stable outlook.
• The electric and gas utility could be trading 10% below fair value from the current share price.
• Alliant Energy's 3.8% dividend yield and midpoint 6% annual non-GAAP EPS growth target alone could generate nearly 10% annual total returns.

As a dividend growth investor, I'm almost always pleased to receive a dividend hike from my investment holdings. After all, who could say no to more cash flowing into their brokerage accounts? The only exceptions to a dividend raise in my view are if it would be more prudent for a company to deleverage the balance sheet or invest in growth.

That's why I was happy back in mid-January to receive the 21st consecutive dividend hike from the electric and natural gas utility, Alliant Energy ( LNT ). The company bumped its quarterly dividend per share up by 6.1% to $0.48 ....

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