June 02, 2026 a 07:46 am
WEC: Dividend Analysis - WEC Energy Group, Inc.
WEC Energy Group, Inc. presents a robust dividend profile with steady growth and long-term commitment to shareholder returns. The company's 41-year history of dividend payments underscores its reliability and dedication to delivering consistent income to investors. However, attention should be paid to the high payout ratio against free cash flow, which may pose some sustainability concerns in the longer term.
📊 Overview
The data reflects the core attributes of WEC Energy Group, Inc., focusing on its dividend yield, sector placement, and history. As a leading utility company, it offers a strong dividend yield and an impressive historical streak of 41 years without suspension or cut, highlighting stability.
| Metrics | Details |
|---|---|
| Sector | Utilities |
| Dividend yield | 3.31 % |
| Current dividend per share | 3.53 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📉 Dividend History
WEC Energy Group, Inc. has demonstrated a reliable dividend payment history, which is essential for investors seeking long-term income stability. Continued payments suggest a stable cash flow generation, reinforcing confidence in ongoing distributions.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.905 |
| 2025 | 3.570 |
| 2024 | 3.340 |
| 2023 | 3.12 |
| 2022 | 2.910 |
📈 Dividend Growth
A consistent growth track in dividends supports positivity around future payouts. Growth rates over 3 and 5 years show steady increases, suggesting a confident long-term outlook for sustaining these increments.
| 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, reinforcing the company's commitment to rewarding its shareholders.
✅ Payout Ratio
Payout ratios are key indicators of dividend sustainability. Evaluating EPS and FCF payout ratios reveals how comfortably dividends are covered by company earnings.
| Key figure | Ratio |
|---|---|
| EPS-based | 70.09 % |
| Free cash flow-based | -103.82 % |
The EPS payout ratio of 70.09 % indicates dividends are largely supported by earnings, although the negative FCF payout ratio might raise concerns about cash flow alignment.
🚀 Cashflow & Capital Efficiency
These metrics demonstrate the company's ability to generate cash flows relative to its investment needs and operational efficiency.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | -3.13 % | 1.44 % | 1.98 % |
| Earnings Yield | 4.63 % | 5.14 % | 5.02 % |
| CAPEX to Operating Cash Flow | 1.32 | 0.87 | 0.83 |
| Stock-based Compensation to Revenue | 0 % | 0 % | 0 % |
| Free Cash Flow / Operating Cash Flow Ratio | -30.14 % | 13.41 % | 17.41 % |
| Return on Invested Capital | 5.25 % | 4.14 % | 3.93 % |
Despite challenges in cash flow yield, high CAPEX indicates reinvestment efforts, bolstering long-term capital returns and efficiency.
💪 Balance Sheet & Leverage Analysis
Examining leverage metrics is vital in assessing financial risk, debt management, and liquidity coverage at WEC Energy Group, Inc.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.64 | 1.64 | 1.60 |
| Debt-to-Assets | 0.43 | 0.43 | 0.43 |
| Debt-to-Capital | 0.62 | 0.62 | 0.62 |
| Net Debt to EBITDA | 5.52 | 5.19 | 5.32 |
| Current Ratio | 0.68 | 0.60 | 0.55 |
| Quick Ratio | 0.34 | 0.43 | 0.40 |
| Financial Leverage | 3.78 | 3.81 | 3.74 |
The steady debt ratios indicate controlled leverage, yet liquidity metrics highlight potential constraints in cash availability.
🌟 Fundamental Strength & Profitability
Profitability and efficiency ratios provide insights into the company's operational success and financial strength.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 11.42 % | 12.30 % | 11.34 % |
| Return on Assets | 3.02 % | 3.23 % | 3.03 % |
| Net Profit Margin | 15.90 % | 17.77 % | 14.99 % |
| EBIT Margin | 26.21 % | 29.79 % | 25.45 % |
| EBITDA Margin | 41.30 % | 45.54 % | 39.67 % |
| Gross Margin | 50.55 % | 44.02 % | 40.50 % |
Strong margins and equity returns underscore WEC Energy's sound operations and profit efficacy, contributing to sustainable growth.
📈 Price Development
🔍 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| 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 |
Total Score: 28/40
🗣️ Rating
WEC Energy Group, Inc. presents a solid investment for income-focused investors, given its consistent dividends and promising growth prospects. While certain cash flow and leverage metrics invite scrutiny, the company retains a strong operational and financial foundation, supporting its continued dividend reliability.
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