As a dividend growth investor, I am always looking to add quality dividend growth stocks to my portfolio. A defining characteristic of superb dividend growth stocks is that regardless of the operating environment, they find a
Alliant Energy: A Fairly Valued Dividend Contender
Summary
- Alliant Energy's non-GAAP EPS payout ratio of 62.8% in 2020 indicates that the dividend is safe for the foreseeable future and there is room for expansion in the payout ratio.
- Despite COVID-19 headwinds and a 6.4% YoY decline in revenues, Alliant Energy's temperature normalized non-GAAP EPS advanced 7.1% in 2020.
- Alliant Energy is forecasting a 6.2% increase in temperature normalized non-GAAP EPS in 2021 at its midpoint guidance figure.
- What's more, Alliant Energy is trading at a 1% discount to fair value based on my inputs into the DCF model and DDM.
- Between its 3.0% yield, 6.0-7.0% annual earnings growth, and 0.1% annual valuation multiple expansion, shares of Alliant Energy are poised to meet my 10% annual total return requirement over the next decade.
Hi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September 2017 (age 20) and interested in dividend investing since about 2009.Since July 2018, I have ran Kody's Dividends. This is a blog that is documenting my journey towards financial independence using dividend growth investing as the means to transform the dream of financial independence into a reality. It's also the inspiration of my pseudonym here on Seeking Alpha.By God's grace, I owe everything to my blog for introducing me to the Seeking Alpha community as an analyst. That's my story and I hope you enjoy my work examining dividend growth stocks and the occasional growth stock!
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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