Ameren Corp's Dividend Analysis
Delving Into Ameren Corp's Dividend Payouts and Financial Health
Ameren Corp (NYSE:AEE) recently announced a dividend of $0.67 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Ameren Corps dividend performance and assess its sustainability.
What Does Ameren Corp Do?
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Ameren Corp operates rate-regulated generation, transmission, and distribution networks that deliver electricity and natural gas in Missouri and Illinois. It serves more than 2.4 million electricity customers and more than 900,000 natural gas customers, making it a significant player in the utilities sector.
A Glimpse at Ameren Corp's Dividend History
Ameren Corp has maintained a consistent dividend payment record since 1984, distributing dividends quarterly. The company has also demonstrated a commitment to increasing its dividend each year since 2009, earning it the title of a dividend achiever.
This distinction is reserved for companies that have consistently raised their dividends annually for at least the past 15 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Ameren Corp's Dividend Yield and Growth
Ameren Corp currently boasts a 12-month trailing dividend yield of 3.45% and a forward dividend yield of 3.67%, indicating an anticipated increase in dividend payments over the next year. Over the past three years, Ameren Corp's annual dividend growth rate was 8.00%, which slows to 6.70% over a five-year period and stands at 4.70% over the past decade.
Considering Ameren Corp's dividend yield and five-year growth rate, the 5-year yield on cost for Ameren Corp stock is approximately 4.77%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a key indicator of a dividend's sustainability. Ameren Corp's ratio stands at 0.60 as of 2023-12-31, suggesting a balance between distributing earnings as dividends and retaining funds for growth and stability. Ameren Corp's profitability rank is a robust 7 out of 10, reflecting good profitability prospects compared to peers. Consistent positive net income over the past decade further supports the company's financial health.