January 12, 2026 a 07:47 am
WEC: Dividend Analysis - WEC Energy Group, Inc.
WEC Energy Group, Inc. is a solid dividend-paying company with a consistent and reliable history of payments and growth. Its expansive 41-year dividend history and yield of 3.47% exemplify its strong market presence. However, the current payout ratios highlight certain financial challenges.
📊 Overview
WEC Energy Group operates within a stable sector, ensuring consistent returns. However, its current financial metrics require close analysis to gauge future sustainability.
| Metric | Value |
|---|---|
| Sector | Utilities |
| Dividend Yield | 3.47% |
| Current Dividend per Share | 3.34 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
WEC Energy Group's significant 41-year dividend history underscores its commitment to delivering shareholder value. A history of consistent payments is crucial for investor confidence and indicates strong internal financial management.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.9525 |
| 2025 | 3.57 |
| 2024 | 3.34 |
| 2023 | 3.12 |
| 2022 | 2.91 |
📈 Dividend Growth
Examining the growth trajectory of dividends is essential to project future income streams for investors. A steady increase signals positive financial health.
| Time | Growth |
|---|---|
| 3 years | 7.05% |
| 5 years | 7.13% |
The average dividend growth is 7.13% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios are critical in evaluating a company's capacity to maintain dividend distributions. High ratios may limit future growth and adaptability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 63.74% |
| Free cash flow-based | -263.82% |
The EPS payout ratio of 63.74% suggests sustainable dividends, although the negative FCF-based ratio may indicate cash flow management issues.
✅ Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency determines the company's ability to generate and utilize cash effectively for both operating and growth purposes.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 1.45% | 1.98% | -0.86% |
| Earnings Yield | 5.14% | 5.02% | 4.77% |
| CAPEX to Operating Cash Flow | 86.59% | 82.59% | 112.34% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 13.41% | 17.41% | -12.34% |
| Return on Invested Capital | 4.14% | 3.93% | 3.93% |
The company shows stable cash flow functionality, though certain metrics highlight areas for improvement, particularly in FCF efficiencies.
⚠️ Balance Sheet & Leverage Analysis
Understanding leverage and liquidity ratios is crucial to assess financial stability and the firm's ability to meet its obligations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.64 | 1.60 | 1.52 |
| Debt-to-Assets | 0.43 | 0.43 | 0.41 |
| Debt-to-Capital | 0.62 | 0.62 | 0.60 |
| Net Debt to EBITDA | 5.19 | 5.32 | 5.14 |
| Current Ratio | 0.60 | 0.55 | 0.69 |
| Quick Ratio | 0.43 | 0.40 | 0.52 |
| Financial Leverage | 3.81 | 3.74 | 3.67 |
Financial leverage remains high, which requires diligent monitoring, though ratios suggest a resilient positioning to manage liabilities.
📊 Fundamental Strength & Profitability
Analyzing fundamental ratios provides insights into operational efficiency and profitability that drive long-term value generation.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 12.30% | 11.34% | 12.35% |
| Return on Assets | 3.23% | 3.03% | 3.37% |
| Net Profit Margin | 17.77% | 14.98% | 14.68% |
| EBIT Margin | 29.79% | 25.45% | 23.42% |
| Gross Margin | 44.02% | 40.50% | 34.39% |
| Research & Development to Revenue | 0% | 0% | 0% |
The fundamental strength is evident with satisfactory returns, although zero R&D expenditure might limit innovation potential.
🔍 Price Development
🎯 Dividend Scoring System
| Criterion | Description | Score |
|---|---|---|
| Dividend Yield | Attractive yield for investors | 3.7 |
| Dividend Stability | Consistently paid | 4.5 |
| Dividend Growth | Historical growth rate | 3.8 |
| Payout Ratio | Balance of payments to earnings | 3.3 |
| Financial Stability | Ability to sustain payments | 3.0 |
| Dividend Continuity | Consistency over time | 4.2 |
| Cashflow Coverage | Supporting cash flow quality | 2.7 |
| Balance Sheet Quality | Overall financial health | 4.0 |
Total Score: 29.2/40
🏅 Rating
WEC Energy Group exhibits a robust dividend payment profile, supported by a lengthy history of predictable payments and moderate growth rates. Though certain liquidity and cash flow figures raise caution, overall financial health and dividend attractiveness make this stock a reliable choice for income-focused investors, emphasizing stable returns with manageable risks.