Update: Allete Reported Strong Q2 Revenue Growth And Rising Earnings
- Revenues grew 10.7% Y/Y, GAAP EPS rose 20% Y/Y despite one-time charges. Quarterly dividend remains unchanged at $0.49 per share, yielding 4.1% annualized.
- The long-term thesis has been working as expected, with ALLETE continuing to be a stable 4% dividend yielder, raising its dividend earlier in the year.
- I reiterate my long thesis and set a $52 target price achievable within 12 months, offering a ~8% upside plus 4.1% dividend yield on very low volatility.