I always seek to add top-notch dividend growth stocks to my portfolio, which is why utilities hold a particularly prominent place in it.
The utility that we will be focusing on is Alliant Energy (NASDAQ:
Why Alliant Energy Remains A Fair Buy
Summary
- Alliant Energy's non-GAAP EPS payout ratio is positioned to remain the same from 2020 to 2021, using the company's midpoint guidance for 2021.
- Despite more significant COVID headwinds in Q1 2021 than Q1 2020, Alliant Energy's total revenue only fell 1.6% year-over-year and non-GAAP EPS declined 5.6%.
- Although Alliant Energy's interest coverage ratio declined from 2.2 in Q1 2020 to 2.1 in Q1 2021, this was solely due to a slight decline in EBIT.
- Alliant Energy is a high-quality business, essentially trading at fair value based on my inputs into the discounted cash flows model and dividend discount model.
- Alliant Energy's 2.9% yield, 6.0-7.0% annual earnings growth potential, and static valuation multiple make it likely that the company will deliver 9-10% annual total returns 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 stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LNT over 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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