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Ameren (AEE) Announces Quarterly Dividend Increase of 3.8%
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Ameren Corporation (AEE - Free Report) recently announced that the board of directors has approved a 3.8% quarterly cash dividend increase on its common stock of 47.5 cents per share. Post issuance of the new rate, the annualized dividend will be $1.90.The hiked dividend is payable on Dec 31, 2018, to shareholders of record as of Dec 12, 2018.
The current dividend yield of the company is 2.97%, higher than the Zacks Composite S&P 500 yield of 1.9%.
Ameren expects dividend pay-out ratio to be between 55% and 70% of annual earnings in the next few years. Per management, the company's strong rate base and earnings growth profile along with solid dividend will provide a yield of approximately 3.3%, which will result in attractive returns for shareholders compared with its regulated utility peers. These initiatives will enable the company to retain investors’ interest in the stock.
Regular Dividend Hikes
In October 2017, management declared a 4% increase in quarterly cash dividend on its common stock of 45.75 cents per share, from the previous quarterly cash dividend of 44 cents, resulting in an annualized equivalent dividend rate of $1.83.A stable financial position enables Ameren to maximize shareholders’ value through the payment of regular dividends and repurchase of shares.
Factors Supporting Dividend Hikes
The company’s systematic investments toward growth projects, infrastructure upgrades, electric transmission and delivery infrastructure are improving service reliability and generating profits.The company expects to spend up to $11.4 billion, comprising up to $4.5 billion, $6.6 billion and $0.3 billion for Ameren Missouri, Ameren Illinois and ATXI, respectively, during 2018-2022.
Dividend Payment by Utilities
Utility stocks are considered a safe investment bet in the volatile market conditions, since their share price do not fluctuate with changes in economic cycle. In addition, the ability to pay regular cash dividend to shareholders makes them appropriate picks for investments.
Other companies from the same industry, who are paying regular dividends, are Duke Energy Corporation (DUK - Free Report) ,FirstEnergy Corporation (FE - Free Report) and NiSource, Inc (NI - Free Report) . Duke Energy has been paying regular dividend for 92 consecutive years. FirstEnergy has been paying the same since 1998. NiSource is paying dividend on a regular basis since 1972.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Ameren (AEE) Announces Quarterly Dividend Increase of 3.8%
Ameren Corporation (AEE - Free Report) recently announced that the board of directors has approved a 3.8% quarterly cash dividend increase on its common stock of 47.5 cents per share. Post issuance of the new rate, the annualized dividend will be $1.90.The hiked dividend is payable on Dec 31, 2018, to shareholders of record as of Dec 12, 2018.
The current dividend yield of the company is 2.97%, higher than the Zacks Composite S&P 500 yield of 1.9%.
Ameren expects dividend pay-out ratio to be between 55% and 70% of annual earnings in the next few years. Per management, the company's strong rate base and earnings growth profile along with solid dividend will provide a yield of approximately 3.3%, which will result in attractive returns for shareholders compared with its regulated utility peers. These initiatives will enable the company to retain investors’ interest in the stock.
Regular Dividend Hikes
In October 2017, management declared a 4% increase in quarterly cash dividend on its common stock of 45.75 cents per share, from the previous quarterly cash dividend of 44 cents, resulting in an annualized equivalent dividend rate of $1.83.A stable financial position enables Ameren to maximize shareholders’ value through the payment of regular dividends and repurchase of shares.
Factors Supporting Dividend Hikes
The company’s systematic investments toward growth projects, infrastructure upgrades, electric transmission and delivery infrastructure are improving service reliability and generating profits.The company expects to spend up to $11.4 billion, comprising up to $4.5 billion, $6.6 billion and $0.3 billion for Ameren Missouri, Ameren Illinois and ATXI, respectively, during 2018-2022.
Dividend Payment by Utilities
Utility stocks are considered a safe investment bet in the volatile market conditions, since their share price do not fluctuate with changes in economic cycle. In addition, the ability to pay regular cash dividend to shareholders makes them appropriate picks for investments.
Other companies from the same industry, who are paying regular dividends, are Duke Energy Corporation (DUK - Free Report) ,FirstEnergy Corporation (FE - Free Report) and NiSource, Inc (NI - Free Report) . Duke Energy has been paying regular dividend for 92 consecutive years. FirstEnergy has been paying the same since 1998. NiSource is paying dividend on a regular basis since 1972.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>