Barclays has revised its outlook on Alliant Energy, downgrading the stock from “Equal Weight” to “Underweight” and assigning a price target of $61. The decision stems from ongoing margin pressures and limited room for capital appreciation in the near term, despite the utility’s stable operating base.
💡 Alliant Energy has long been a favorite among income-focused investors due to its reliable dividend history. The company has raised its dividend annually for over two decades, showcasing a strong commitment to shareholder returns. Currently, the stock offers an annual dividend of $1.92 per share, translating to a yield of approximately 3.16%.
📅 The upcoming dividend payment of $0.5075 per share is slated for May 15, 2025, with the ex-dividend date on April 30. While the yield is competitive, the payout ratio of around 71.3% signals that a large portion of earnings is being distributed, potentially limiting reinvestment opportunities and flexibility during downturns.
⚠️ Barclays’ downgrade reflects skepticism about the stock’s ability to deliver strong performance in a rising cost environment. As inflationary pressures and regulatory uncertainty persist, the margin compression may weigh on future earnings.
💸 For dividend investors, LNT still provides a solid income stream, but the lack of compelling upside could make it less attractive compared to other utilities with more room to grow.