ST. LOUIS – Ameren Corporation (NYSE:), a leading energy company, has announced that its board of directors declared a quarterly cash dividend for its common stock at 67 cents per share. The dividend is set to be distributed on September 30, 2024, to shareholders who are on record by the close of business on September 11, 2024.
In related news, Ameren Missouri, also known as Union Electric Company, will pay out regular quarterly cash dividends on all classes of its preferred stock on November 15, 2024, to shareholders of record as of October 18, 2024. Similarly, Ameren Illinois Company has declared regular quarterly cash dividends on all classes of its preferred stock, which are payable on November 1, 2024, to shareholders recorded by October 14, 2024.
Ameren Corporation serves approximately 2.4 million electric customers and over 900,000 customers over a 64,000-square-mile area through its subsidiaries, Ameren Missouri and Ameren Illinois. The company is involved in electric transmission and distribution, as well as natural gas distribution, and also operates rate-regulated regional electric transmission projects through Ameren Transmission Company of Illinois.
In other recent news, Ameren Corporation has reported a positive second quarter, with earnings per share (EPS) increasing to $0.97 from $0.90 in the same quarter of the previous year. This outperformance led BMO Capital Markets to raise Ameren’s price target to $87.00 from $84.00, maintaining an Outperform rating on the stock. These are just a few of the recent developments for Ameren.
The company’s earnings growth is backed by a robust investment pipeline valued at over $55 billion and potential long-term investment opportunities in transmission related to the Midcontinent Independent System Operator’s (MISO) Long Range Transmission Planning (LRTP) Tranche 2.1 and 2.2 portfolios. Ameren also anticipates a compound annual earnings growth rate of 6% to 8% from 2024 to 2028, forecasting an EPS range of $4.52 to $4.72 for the year.
Furthermore, Ameren is experiencing customer growth with data center inquiries and has executed a construction agreement for a 250-megawatt data center. The company’s future prospects are also bolstered by a positive load growth outlook, expected to be reflected in the updated Missouri Integrated Resource Plan (MO IRP) set for February 2025.
InvestingPro Insights
Ameren Corporation (NYSE:AEE) continues to demonstrate its commitment to shareholders with the announcement of its upcoming dividend payment. In light of this, key financial metrics and InvestingPro Tips offer further insights into the company’s performance and investor considerations. As of the last twelve months leading up to Q2 2024, Ameren boasts a market capitalization of $21.43 billion and maintains a P/E ratio of 18.2, suggesting a strong market valuation relative to its earnings. Additionally, the company’s revenue stands at $6.947 billion, with a gross profit margin of 52.05%, indicating a robust ability to convert sales into profit.
InvestingPro Tips highlight Ameren’s track record of raising its dividend for 10 consecutive years, reflecting a reliable income stream for investors. Moreover, the company has maintained dividend payments for 27 consecutive years, underscoring its financial stability and commitment to shareholders. However, Ameren operates with a significant debt burden, and its short-term obligations exceed its liquid assets, which could be points of consideration for risk assessment.
For investors seeking further guidance, there are additional InvestingPro Tips available at https://www.investing.com/pro/AEE, which provide comprehensive analysis and expert insights. These tips include observations on the company’s earnings revisions, P/E ratio, stock volatility, and profitability forecasts, which can be instrumental in making informed investment decisions.
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