Ameren Corporation Announces Quarterly Dividend of $0.75 (NYSE:AEE)

Key Points

• Ameren declared a quarterly dividend of $0.75 per share, payable September 30 to shareholders of record as of September 8. The payment implies a $3.00 annualized dividend and a 2.8% yield.
• Ameren has increased its dividend for 12 consecutive years, with a current earnings payout ratio of 56.6%. Analysts expect next year’s earnings of $5.86 per share, suggesting the dividend remains well covered.
• The company’s latest quarterly earnings of $1.13 per share exceeded estimates of $1.08, although revenue fell 5.8% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $121.42.

Ameren Corporation (NYSE:AEE - Get Free Report) declared a quarterly dividend on Friday, August 14th. Shareholders of record on Tuesday, September 8th will be given a dividend of 0.75 per share by the utilities provider on Wednesday, September 30th. This represents a c) annualized dividend and a yield of 2.8%. The ex-dividend date is Tuesday, September 8th.

Ameren has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 12 years. Ameren has a payout ratio of 56.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Ameren to earn $5.86 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 51.2%.

Ameren Price Performance

Ameren stock opened at $106.34 on Friday. The company has a market cap of $29.44 billion, a P/E ratio of 18.72, a price-to-earnings-growth ratio of 3.11 and a beta of 0.46. Ameren has a one year low of $96.57 and a one year high of $118.32. The business has a fifty day moving average of $110.13 and a two-hundred day moving average of $110.26. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.37 and a current ratio of 0.53.

Ameren (NYSE:AEE - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The utilities provider reported $1.13 earnings per share for the quarter, topping analysts' consensus estimates of $1.08 by $0.05. Ameren had a net margin of 17.86% and a return on equity of 10.95%. The business had revenue of $2.09 billion for the quarter, compared to analysts' expectations of $2.27 billion. During the same period in the prior year, the company posted $1.01 EPS. The business's revenue for the quarter was down 5.8% on a year-over-year basis. Ameren has set its FY 2026 guidance at 5.250-5.450 EPS. As a group, analysts predict that Ameren will post 5.4 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AEE. Morgan Stanley lowered their price target on Ameren from $118.00 to $114.00 and set an "equal weight" rating on the stock in a report on Friday, August 21st. Weiss Ratings reiterated a "buy (b)" rating on shares of Ameren in a research report on Friday, August 7th. Truist Financial lowered their target price on Ameren from $124.00 to $120.00 and set a "buy" rating on the stock in a report on Monday, August 17th. Barclays raised their price target on Ameren from $116.00 to $117.00 and gave the company an "equal weight" rating in a research report on Thursday, July 9th. Finally, JPMorgan Chase & Co. lifted their price target on Ameren from $126.00 to $137.00 and gave the stock an "overweight" rating in a research note on Thursday, July 16th. Ten research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $121.42.

About Ameren

Ameren Corporation NYSE: AEE is an integrated energy company headquartered in St. Louis, Missouri, that provides electric and natural gas delivery and related services in portions of Missouri and Illinois. The company operates regulated utility businesses that serve a broad mix of residential, commercial and industrial customers, and it participates in wholesale energy markets and transmission operations that support reliable service across its service territories.

Ameren's core activities include generation, transmission and distribution of electricity, distribution of natural gas, and the provision of customer energy solutions such as demand-side management and energy efficiency programs.

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