MGE Energy Inc. (NASDAQ:MGEE) Declares Quarterly Dividend of $0.51

Key Points

• MGE Energy raised its quarterly dividend 7% to $0.5083 per share, payable September 15 to shareholders of record as of September 1. The dividend implies an annualized yield of approximately 2.6% and marks the company’s 49th consecutive year of increases.
• The dividend appears well covered, with a current payout ratio of 51.7% and an expected future payout ratio of 47.1% based on analysts’ projected earnings.
• MGE Energy shares opened at $78.15, while analysts maintain a consensus “Hold” rating and a $77.50 price target. The company recently reported quarterly EPS of $0.89, exceeding the $0.77 consensus estimate.

MGE Energy Inc. (NASDAQ:MGEE - Get Free Report) declared a quarterly dividend on Friday, August 21st. Investors of record on Tuesday, September 1st will be given a dividend of 0.5083 per share by the utilities provider on Tuesday, September 15th. This represents a c) dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Tuesday, September 1st. This is a 7.0% increase from MGE Energy's previous quarterly dividend of $0.47.

MGE Energy has raised its dividend by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 49 years. MGE Energy has a payout ratio of 51.7% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect MGE Energy to earn $4.31 per share next year, which means the company should continue to be able to cover its $2.03 annual dividend with an expected future payout ratio of 47.1%.

MGE Energy Stock Down 0.3%

Shares of MGE Energy stock opened at $78.15 on Friday. The business has a 50-day moving average price of $80.77 and a 200 day moving average price of $78.80. MGE Energy has a fifty-two week low of $72.16 and a fifty-two week high of $87.94. The firm has a market cap of $2.95 billion, a P/E ratio of 19.20 and a beta of 0.71. The company has a quick ratio of 0.79, a current ratio of 1.14 and a debt-to-equity ratio of 0.61.

MGE Energy (NASDAQ:MGEE - Get Free Report) last issued its earnings results on Wednesday, August 5th. The utilities provider reported $0.89 EPS for the quarter, topping the consensus estimate of $0.77 by $0.12. MGE Energy had a return on equity of 11.10% and a net margin of 19.45%.The company had revenue of $161.19 million during the quarter, compared to analyst estimates of $166.37 million. On average, sell-side analysts forecast that MGE Energy will post 3.99 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on MGEE shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of MGE Energy in a report on Wednesday, August 5th. Morgan Stanley cut their target price on shares of MGE Energy from $76.00 to $74.00 and set an "underweight" rating on the stock in a report on Friday, August 21st. Finally, LADENBURG THALM/SH SH raised MGE Energy from a "neutral" rating to a "buy" rating and set a $81.00 target price for the company in a report on Monday, June 8th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $77.50.

MGE Energy Company Profile

MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Through its principal subsidiary, Madison Gas and Electric Company (MGE), the company provides regulated electric and natural gas distribution services to residential, commercial and industrial customers in south-central Wisconsin. MGE Energy's operations encompass the generation, transmission and distribution of electricity as well as the purchase and distribution of natural gas, with an emphasis on reliable service and system resilience.

Since reorganizing as a holding company in 2001, MGE Energy has expanded its portfolio to include nonregulated subsidiaries involved in renewable energy development, energy services and infrastructure support.

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