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WEC Energy Group: A Core Portfolio Dividend Growth Play

Jun. 27, 2023 4:10 PM ETWEC Energy Group, Inc. (WEC)16 Comments


  • WEC has provided 20 years of annual dividend growth, marked by the 7.2% increase we saw for 2023.
  • They are currently within their target payout ratio, so any growth going forward is anticipated to be at the same rate as their earnings.
  • Utilities have been hit as a result of higher risk-free rates and higher financing costs, but that's what can present an opportunity to add for a longer-term investor.
  • This idea was discussed in more depth with members of my private investing community, Cash Builder Opportunities. Learn More »

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Written by Nick Ackerman. This article was originally published to members of Cash Builder Opportunities on June 13th, 2023.

Utilities can often be seen as a core foundation for a great dividend portfolio. They aren't necessarily the most exciting

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This article was written by

Cash Builder Opportunities (aka Nick Ackerman) is a former fiduciary and a registered financial advisor with 14 years of investing experience.

He is the leader of the investing group Cash Builder Opportunities, where his specific focus is on closed-end funds, dividend growth stocks, and option writing as an attractive way to achieve income. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of WEC either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (16)

Can't miss this opportunity. GLTA
Cash Builder Opportunities profile picture
@Hugh Arhue thank you for reading! I actually posted a quick update today as well, as I think WEC is looking like a solid opportunity! seekingalpha.com/...
Steady Income profile picture
WEC and ED are my two main utilities. ED at an average price of $65 is one of my largest holdings. I continue to build WEC when it gets close to $80. I have a smidgen of BUI and UTF, too.
Cash Builder Opportunities profile picture
@Steady Income thank you for sharing! I'm holding BUI and UTF, too. That's a great average price you've been able to get ED!
Longtime WEC long, one of several utilities held.

Retired dividend-growth investor.
Cash Builder Opportunities profile picture
@usiah good to hear it! What other utilities are you holding? I also have DTE and NEE (along with NEP.)
@Cash Builder Opportunities

Have always liked NEE but haven't bought it (yet). DTE and NEP look like they've performed really well over the years with good dividend growth. But Michigan is not high on my list, and NEP is a PTP, which keeps me away (although I am a longtime holder of a few midstream PTPs).

My other individual utilities are DUK, SO, NWE, OGE, AWK, and WTRG.
dbchambers profile picture
Solid Midwest UTE - history of growing dividends and well managed. Buying monthly via DRIP. Rinse and repeat. EVs and cold winters still need WEC.
Cash Builder Opportunities profile picture
@dbchambers absolutely! Thank you for sharing your input!
Utilities are in a period of transition with implementation of alternative energy. While capital cost and subsequent interest ramp up, fuel cost and environment impact cost will decline. That balance is critical. Future dividend increases will indicate how well WEC and other utilities manage the pace.
Cash Builder Opportunities profile picture
@LK106218 thank you for sharing your thoughts!
Interesting data and commentary.
I keep on buying WEC in the low-to-mid $80's only to sell when the stock price tops out in the mid-to-upper $100s. I'm not certain the current range bound sp trend will be any different this time. I'd prefer to hold this steady dividend grower but the appreciated sp is often too appealing to pass up.
Cash Builder Opportunities profile picture
@sd55 fair strategy! Thank you for sharing.
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