May 26, 2025 a 03:31 am
LNT: Dividend Analysis - Alliant Energy Corporation
Alliant Energy Corporation has established a robust dividend profile over its 39-year history of consistent dividend payments. With a current dividend yield of 3.24% and a steady growth trajectory, this stock presents a reliable dividend income option for investors. The firm's prudent management of cash flow and payout ratios further bolsters its appeal, making it a strong candidate for dividend portfolios. However, the extensive leverage and varied growth rates necessitate cautious monitoring.
📊 Overview
Alliant Energy Corporation operates within a sector known for stability and consistent returns. The company's dividend profile reflects its commitment to returning value to shareholders over the long term. Below is a summary of key dividend metrics:
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.24% |
| Current Dividend Per Share | $1.92 USD |
| Dividend History | 39 years |
| Last Cut or Suspension | None |
📈 Dividend History
Understanding the historical dividend performance is crucial for assessing a company's commitment to its dividend policy. The consistent increase over decades evidences Alliant Energy's reliability. The inclusion of a dividend chart offers visual insight into this stability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.0150 |
| 2024 | 1.920 |
| 2023 | 1.8100 |
| 2022 | 1.7100 |
| 2021 | 1.6100 |
📈 Dividend Growth
Dividend growth is a critical indicator of a company’s financial health and its ability to enhance shareholder value. A steady growth rate indicates robust operational capabilities and diligent fiscal management. The following table highlights recent growth rates:
| Time | Growth |
|---|---|
| 3 years | 6.05% |
| 5 years | 6.22% |
The average dividend growth is 6.22% over 5 years. This shows moderate but steady dividend growth.
💸 Payout Ratio
The payout ratio assesses the proportion of earnings paid as dividends, critical for understanding sustainability. A high ratio can indicate risk, a low ratio flexibility. Below are Alliant Energy’s payout ratios:
| Key figure | Ratio |
|---|---|
| EPS-based | 70.57% |
| Free cash flow-based | 82.26% |
The EPS-based payout ratio of 70.57% indicates a generous dividend policy, whereas the 82.26% payout of free cash flow suggests attentiveness to shareholder returns while maintaining operational funds.
💡 Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency is essential for understanding a company's ability to support its dividend payments and fund new investments. Here's how Alliant Energy fares over recent years:
| Metric / Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 7.69% | -7.60% | -7.20% |
| Earnings Yield | 4.55% | 5.42% | 4.95% |
| CAPEX to Operating Cash Flow | 104.88% | 213.84% | 305.35% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.31% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | -113.84% | -205.35% |
The cash flow figures indicate fluctuating free cash flow, suggesting a variable environment, yet the earnings yield reflects positive capital efficiency.
⚖️ Balance Sheet & Leverage Analysis
A thorough leverage analysis helps gauge financial stability. Alliant Energy’s debt metrics provide a clear picture of its balance sheet health, crucial for assessing long-term risk:
| Metric / Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.49 | 1.43 | 1.39 |
| Debt-to-Assets | 45.81% | 45.69% | 43.24% |
| Debt-to-Capital | 59.77% | 58.88% | 58.14% |
| Net Debt to EBITDA | 5.75 | 5.43 | 5.15 |
| Current Ratio | 0.44 | 0.55 | 0.53 |
| Quick Ratio | 0.33 | 0.40 | 0.39 |
| Financial Leverage | 3.24 | 3.13 | 3.21 |
Debt-to-equity and other leverage metrics demonstrate a stable yet elevated level of leverage, underscoring the necessity for continued financial vigilance.
💪 Fundamental Strength & Profitability
Fundamentals and profitability ratios are telltale indicators of a company’s success in generating earnings and managing resources. Here's a brief look:
| Metric / Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.85% | 10.37% | 10.93% |
| Return on Assets | 3.04% | 3.31% | 3.40% |
| Net Profit Margin | 17.33% | 17.46% | 16.31% |
| EBIT Margin | 25.75% | 27.34% | 24.57% |
| EBITDA Margin | 45.14% | 44.13% | 40.14% |
| Gross Margin | 44.71% | 43.06% | 40.64% |
| R&D to Revenue | 0% | 0% | 0% |
The profitability ratios reflect consistent margins, signifying continuous operational efficiency and cost control effectiveness.
🌐 Price Development
🗣️ Dividend Scoring System
The scoring system evaluates the dividend viability across multiple facets, assigning a score from 1 to 5 in each category:
| Category | Score | |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 2 | |
| Balance Sheet Quality | 3 |
Overall Score: 28/40
✅ Rating
Alliant Energy Corporation presents a compelling case for dividend-focused portfolios, balancing robust historical dividend consistency with a moderate growth outlook. Investors should remain mindful of its leverage profile as they consider this utility giant for a long-term income-generating strategy. The stock is rated as a “Solid Dividend Performer” with some areas warranting periodic review.