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ALLETE (ALE) Ups Dividend by 4.7%, Revises Earnings Outlook
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ALLETE Inc. (ALE - Free Report) announced that its board of directors has approved a 4.7% increase in its quarterly dividend to 56 cents from 53.5 cents paid in the previous quarter. The new dividend will be distributed on Mar 1, 2018 to shareholders of record at the close of business on Feb 15.
The new annualized dividend of $2.24 per share reflects a dividend yield of 3.09%, which is better than the S&P 500’s yield of 1.63%. The company aims to maintain a dividend payout ratio in the range of 60% to 65%.
Revision in Earnings Outlook
The company also raised its long-term earnings growth forecast from minimum of 5% to a range between 5% and 7%. The performance of this utility is driven by organic growth as well as by addition of customers and expansion of operation in new geographies. In addition, strategic acquisitions with the price range of $10 million to $50 million are also helping the company to expand operation and expand its revenue base.
As nearly 85% to 90% of ALLETE’s income is generated from regulated operation, the company is going to gain from new rates expected to be applicable during third quarter of 2018. In addition, the company expects contribution from its non-regulated businesses to increase after 2018.
What Lies Ahead?
ALLETE’s earnings growth potential, improving cash flow from operations and solid balance sheet support its consistent performance and regular dividend payment. The company has been paying dividends for 68 consecutive years and is expected to continue doing so in the coming years.
ALLETE generates a substantial amount of its earnings from large industrial customers under long-term agreement, which provide stability to its performance.
Price Movement
ALLETE’s stock has returned 15.1% last year, outperforming the 2.8% gain of the industry.
CenterPoint Energy delivered an average positive earnings surprise of 6.42% in the last four quarters. Its 2018 Zacks Consensus Estimate moved up 4.3% to $1.47 in the last 30 days.
Exelon pulled off an average positive earnings surprise of 1.76% in the last four quarters. Its 2018 Zacks Consensus Estimate moved up 2.1% to $2.91 in the last 30 days.
Fortis came up with an average positive earnings surprise of 10.65% in the last four quarters. Its 2018 Zacks Consensus Estimate moved up 0.5% to $2.05 in the last 30 days.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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ALLETE (ALE) Ups Dividend by 4.7%, Revises Earnings Outlook
ALLETE Inc. (ALE - Free Report) announced that its board of directors has approved a 4.7% increase in its quarterly dividend to 56 cents from 53.5 cents paid in the previous quarter. The new dividend will be distributed on Mar 1, 2018 to shareholders of record at the close of business on Feb 15.
The new annualized dividend of $2.24 per share reflects a dividend yield of 3.09%, which is better than the S&P 500’s yield of 1.63%. The company aims to maintain a dividend payout ratio in the range of 60% to 65%.
Revision in Earnings Outlook
The company also raised its long-term earnings growth forecast from minimum of 5% to a range between 5% and 7%. The performance of this utility is driven by organic growth as well as by addition of customers and expansion of operation in new geographies. In addition, strategic acquisitions with the price range of $10 million to $50 million are also helping the company to expand operation and expand its revenue base.
As nearly 85% to 90% of ALLETE’s income is generated from regulated operation, the company is going to gain from new rates expected to be applicable during third quarter of 2018. In addition, the company expects contribution from its non-regulated businesses to increase after 2018.
What Lies Ahead?
ALLETE’s earnings growth potential, improving cash flow from operations and solid balance sheet support its consistent performance and regular dividend payment. The company has been paying dividends for 68 consecutive years and is expected to continue doing so in the coming years.
ALLETE generates a substantial amount of its earnings from large industrial customers under long-term agreement, which provide stability to its performance.
Price Movement
ALLETE’s stock has returned 15.1% last year, outperforming the 2.8% gain of the industry.
Zacks Rank & Key Picks
ALLETE has a Zacks Rank #3 (Hold). Some better-ranked stocks from the industry are CenterPoint Energy Inc. (CNP - Free Report) , Exelon Corporation (EXC - Free Report) and Fortis Inc. (FTS - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy delivered an average positive earnings surprise of 6.42% in the last four quarters. Its 2018 Zacks Consensus Estimate moved up 4.3% to $1.47 in the last 30 days.
Exelon pulled off an average positive earnings surprise of 1.76% in the last four quarters. Its 2018 Zacks Consensus Estimate moved up 2.1% to $2.91 in the last 30 days.
Fortis came up with an average positive earnings surprise of 10.65% in the last four quarters. Its 2018 Zacks Consensus Estimate moved up 0.5% to $2.05 in the last 30 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>