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Ameren Corporation: Might Make Sense To Accumulate This Stable, Growing Utility

Apr. 17, 2023 12:44 PM ETAmeren Corporation (AEE)CMS, DTE, ES, ETR, IDU, PEG2 Comments

Summary

  • Ameren Corporation is a regulated electric and natural gas utility that serves a large portion of Missouri and Illinois.
  • The company has remarkably stable cash flows over time, which should position it well to ride through any near-term recession or economic problems.
  • The company is well-positioned to deliver solid EPS growth and a 9% to 11% total annual return over the next five years.
  • The dividend yield is only 2.82%, but it does appear to be quite safe and well-covered.
  • Ameren Corporation has a reasonable valuation, although a patient investor could get a better entry point if the market turns downward in the second half of 2023.
  • Looking for more investing ideas like this one? Get them exclusively at Energy Profits in Dividends. Learn More »

Corn Field & Power Line

shaunl

Ameren Corporation (NYSE:AEE) is a regulated electric and natural gas utility that serves the eastern part of Missouri and most of the southern part of the state of Illinois. The utility sector in general has long been one

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Power Hedge has been covering both traditional and renewable energy since 2010. He targets primarily international companies of all sizes that hold a competitive advantage and pay dividends with strong yields.

He is the leader of the investing group Energy Profits in Dividends where he focuses on generating income through energy stocks and CEFs while managing risk through options. He also provides micro and macro-analysis of both domestic and international energy companie. Learn more.

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Comments (2)

dbchambers profile picture
Will BRBK buy them ?
ValueVole profile picture
Thanks for the article.

AEE’s PEG ratio is higher than some peers, but as you noted, the net debt to equity ratio is lower than all peers comps.

Safety and quality come with a price. Long AEE.
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