Published Wed, 11 Jan 2017 14:06:27 -0500 on Seeking Alpha
Alliant Energy (NYSE: LNT) is a utility company that serves approximately 950,000 electric customers and 410,000 natural gas customers. It is a growing company with 13 years of dividend growth that is currently priced to make it a good value.
Is LNT a good investment partner?
I have 4 areas that I examine for each company to see if it will make a good investment partner. My checklist consists of the following: A growing market, growing profits, good credit and well-managed debt, and a growing dividend that is supported by earnings. And an implicit 5th requirement is that the company cares about these things too and makes an effort to show me how well it is doing in these areas. For LNT, I found what I wanted in this presentation, read the whole thing, and below I include the slides that support my analysis of each checklist item.
These first two slides address the market item on my checklist. Iowa and Wisconsin are not the economic star that is Texas, but they are doing okay. And supplying gas and electricity to these areas is a good solid business with their very cold winters and warm summers. Coupled with the 6% and 11% rate base increases through 2019, for WPL and IPL respectively, the second slide shows a growing revenue base.
This slide addresses the profits item from my checklist. I see that they struggled to raise earnings in 2015, but that both before and after earnings increased at a rate in the upper single digits. I also like that the dividend... Read more