Updated 4/14/25
Alliant Energy Corporation (LNT) is a Midwest-based regulated utility serving customers across Iowa and Wisconsin, with a growing focus on clean energy and infrastructure modernization. Over the past year, the company has delivered solid earnings growth, raised its dividend for the 21st consecutive year, and steadily expanded its solar and wind generation capacity. Shares have gained over 26% in the last 12 months, supported by a favorable regulatory environment and disciplined cost management. With a forward dividend yield of 3.35%, stable cash flow from regulated operations, and a leadership team focused on long-term execution, Alliant continues to offer income stability and steady capital appreciation potential.
Recent Events
Alliant Energy (LNT) might not grab headlines like tech giants, but its recent performance is a good reminder of why utilities remain a favorite among dividend-focused investors. Over the last year, the stock has quietly climbed over 26%, a solid move that reflects both improved fundamentals and a renewed investor appetite for stability.
In its most recent quarter, Alliant posted a strong 24% year-over-year increase in earnings. Revenue growth was more modest at 1.6%, but the real story here is margin improvement and effective cost controls. This kind of earnings strength provides a solid foundation for the dividend, which continues to grow at a steady pace.
The company’s operations in Iowa and Wisconsin are still the bedrock of its performance. Its relationships with regulators remain smooth, and the long-term capital investment plan is centered around clean energy expansion, system modernization, and infrastructure upgrades. That positions Alliant well to maintain stable cash flows and support its dividend strategy going forward.
Key Dividend Metrics
💰 Forward Dividend Yield: 3.35%
🔁 5-Year Average Dividend Yield: 3.12%
📈 Dividend Growth (Trailing Annual): 5.73%
🧮 Payout Ratio: 71.38%
📅 Next Dividend Date: May 15, 2025
⏳ Ex-Dividend Date: April 30, 2025
Dividend Overview
Alliant’s dividend yield currently sits at 3.35%, which is comfortably above its five-year average. While it’s not the highest yield in the sector, it stands out for consistency. The annual dividend now totals $2.03 per share, recently bumped up from $1.92—an increase that shows a healthy commitment to returning capital to shareholders.
What’s striking is the balance Alliant maintains. The payout ratio of 71% is right in the sweet spot for a utility. It’s generous enough to deliver a meaningful yield but still leaves room for reinvestment and future growth. Investors don’t need to worry that the company is overextending itself to fund the dividend. The hike was measured, just under 6%, and that kind of pacing adds long-term value without raising red flags.
Debt is always a topic with utilities, and Alliant does carry over $10.6 billion. That said, its debt levels are very much in line with others in the space. Utilities often operate with high leverage because they’re investing in long-term infrastructure and typically have regulated returns to back them up. So long as Alliant continues to manage these relationships effectively, it can maintain this structure without putting the dividend at risk.
Dividend Growth and Safety
Alliant has quietly built one of the more dependable dividend growth streaks in the utility world. It’s increased its dividend annually for over 15 straight years, and there’s no sign that pace is slowing. Since its last stock split in 2016, it’s continued to step up the payout every single year.
As far as safety goes, things look solid. With a beta of just 0.52, this stock isn’t going to swing wildly. That kind of low volatility is great for income investors who prioritize stability over excitement. The current return on equity stands at just over 10%, which shows that Alliant is using its capital effectively, not just sitting on assets.
Now, it’s true the levered free cash flow is negative at the moment—about -$1.09 billion—but that’s tied to capital spending. This is a common scenario for utilities investing in their future. Alliant is heavily funding renewables, smart grid upgrades, and related infrastructure. These are long-term plays, and management has already signaled that spending will taper in a few years. Once it does, free cash flow should swing back to positive territory, further supporting the dividend.
Nearly all of Alliant’s earnings come from regulated operations, which gives it a predictable income stream. That’s a big plus when assessing dividend stability. With roughly 84% of shares held by institutions, this isn’t a stock getting tossed around by retail traders. It’s in the hands of long-term investors who value income and consistency.
Alliant Energy’s dividend story isn’t about high yield or aggressive growth. It’s about dependability. Year after year, through market cycles and changing energy trends, this company continues to deliver a dividend that grows, supports long-term investing, and fits comfortably into a portfolio built for income.
Cash Flow Statement
Alliant Energy’s trailing twelve months of cash flow show a utility company in the midst of a major investment cycle. Operating cash flow came in at $357 million, which represents an increase from the prior year but remains modest given the size of the company. This reflects steady earnings performance, but also suggests rising operating costs and pressures from inflation that utilities are still navigating. Free cash flow, however, landed deep in negative territory at -$867 million, driven largely by capital expenditures exceeding $1.2 billion. That level of spending is consistent with Alliant’s multi-year investment strategy in grid modernization and renewable energy buildout.
On the financing side, Alliant raised $643 million in new debt and paid down $500 million, a move that indicates careful balancing of the capital structure during an aggressive investment phase. Despite the sizable capital outlays and negative free cash flow, the company still ended the period with $29 million in cash on hand, down from $53 million the year prior. It’s not an unusual picture for a utility in expansion mode, but it does underscore the importance of stable regulatory returns to support continued funding. The strategy appears focused on long-term infrastructure, which could support earnings and dividends once those investments start generating returns.
Analyst Ratings
📊 Alliant Energy (LNT) has seen a mix of analyst sentiment recently, with some firms adjusting their outlook to reflect current market conditions and company-specific developments. The general consensus hovers around a “Hold” rating, suggesting that most analysts see limited upside or downside in the near term based on current fundamentals.
🎯 The average 12-month price target sits at approximately $63.55, which implies a modest upside from where the stock is currently trading. Among the range of projections, the highest target reaches $70.00, while the lowest is more conservative at $57.00. These targets reflect differing expectations on rate case outcomes, infrastructure execution, and cost management.
📈 Recently, a few notable updates have shaped the outlook. One investment firm reaffirmed its neutral stance but bumped its price target from $65 to $68, pointing to confidence in Alliant’s earnings stability and its ongoing capital investment plan. Another raised its target from $66 to $70, citing the strength of its regulatory relationships and forward-looking energy transition strategy. On the flip side, a downgrade to “Sell” came from a more cautious view on valuation and potential regulatory headwinds, adjusting the target down to $59.
🔍 The mood among analysts is neither overly optimistic nor pessimistic. They seem to appreciate Alliant’s reliable cash flow and dividend consistency, while also keeping an eye on how the company navigates rising costs and regulatory expectations.
Earning Report Summary
Solid Finish to 2024
Alliant Energy closed out 2024 on a high note, with earnings per share coming in at $3.04. That’s up from $2.82 the year before and shows the company is still managing to grow in a challenging environment. The gains were largely fueled by investments in renewable energy, which are starting to pay off. Alliant brought 1,500 megawatts of solar generation online last year, adding to its already strong wind portfolio. For a utility leaning hard into clean energy, that’s a major step forward.
At the same time, they’ve been mindful of costs. Operating and maintenance expenses were trimmed by around $30 million from the prior year, even after adjusting for one-time items. That kind of discipline is important when you’re balancing capital-intensive projects with expectations for consistent earnings.
A Few Headwinds, But Still Moving Forward
It wasn’t all smooth sailing. Milder weather knocked about $0.15 off earnings per share, and higher depreciation and financing costs also put some pressure on the bottom line. But even with those headwinds, the company posted a 35% jump in operating cash flow—thanks in part to strong execution on monetizing tax credits and recovering infrastructure investments.
Leadership made it clear they’re not backing off their long-term plans. They reiterated guidance for 2025 in the range of $3.15 to $3.25 per share, which keeps them on track with their 5% to 7% earnings growth target. That’s a reassuring signal for shareholders who value steady, predictable performance.
Alliant also marked its 21st straight year of increasing dividends. That streak alone tells you a lot about the company’s priorities. Even while pouring billions into the energy transition, they haven’t lost sight of rewarding shareholders along the way. It’s a balancing act they seem to be managing well.
All in all, the latest report paints a picture of a company that knows what it wants to be—disciplined, forward-looking, and built for the long haul.
Chart Analysis
Steady Climb With Periodic Cooling
LNT has had a strong year, pushing steadily higher from the low $47 range last spring to recent highs above $66 before pulling back. The price action shows a healthy long-term uptrend, supported by a consistent climb in the 200-day moving average. That blue line reflects longer-term strength, gradually rising without interruption over the past 12 months.
The 50-day moving average had a sharper trajectory through most of the year but started flattening in March before turning slightly downward in early April. That kind of behavior often shows short-term selling pressure amid a longer-term uptrend. The price recently pulled back close to the 200-day line and appears to be bouncing off of it, which is typically a constructive signal when the long-term trend remains intact.
Momentum Reset and Healthy Volume
Looking at the RSI in the bottom panel, the stock reached overbought territory multiple times over the past year but has now reset toward the neutral zone. This pullback in RSI near the 40–50 level may be creating room for the next leg higher. There hasn’t been any indication of prolonged weakness or signs that momentum is breaking down.
Volume patterns have stayed reasonably stable, without any spikes that suggest panic selling. Even during the dips in January and early April, trading activity remained controlled. That kind of orderly action can point to confidence in the name rather than fear.
Price Behavior and Support
The most recent candles show a reversal near $59 after the stock broke below the 50-day average briefly. There’s been a bounce back toward the $61–$62 area. Those lower wicks around the April lows suggest buyers stepped in at key support levels. The longer wicks on some of those days also indicate rejection of lower prices, hinting at underlying demand.
The overall structure here suggests that LNT is holding firm above its long-term trend while working through some short-term consolidation. As long as the 200-day average continues to slope higher and price respects it, the trend remains favorable.
Management Team
Alliant Energy’s leadership is led by CEO Lisa Barton, who stepped into the role in January 2024. Before that, she served as the company’s president and COO, and brings with her a strong track record in clean energy strategy and operational execution. Her leadership marks a continuation of Alliant’s long-term focus on growth through sustainability and customer-centric innovation. Former CEO John Larsen now serves as executive chairman, where he continues to contribute to the company’s strategic direction and broader stakeholder engagement.
The rest of the executive team features individuals with deep industry experience. Barbara Tormaschy leads efforts in sustainability and regulatory policy, while Michael Luhrs oversees customer experience and forward-looking strategy. Together, this team is driving Alliant’s transition to a more modern and efficient utility model.
The board of directors includes professionals with diverse backgrounds in finance, energy, and technology. Their role in corporate governance and strategic oversight adds another layer of stability and direction to the company’s long-term outlook.
Valuation and Stock Performance
Alliant Energy’s stock has moved within a wide range over the past year, from a low near $47 to a high of around $66. Most recently, shares closed at $60.59, putting them near the upper end of their 12-month range. That price reflects improving sentiment toward utilities, as well as company-specific execution on earnings and investments.
With a market cap sitting at about $15.6 billion and a trailing price-to-earnings ratio of 22.5, Alliant trades in line with industry peers. It’s not aggressively priced, but also not trading at a discount. Analysts have a consensus 12-month price target of $63.55, pointing to moderate upside potential from current levels.
Earnings for 2024 came in strong, with Alliant reporting $3.04 per share in ongoing earnings, up from $2.82 the year before. The primary driver of that growth was the successful buildout of 1,500 megawatts of solar energy projects, which now complement its already-established wind generation base. This investment in renewables has been a central part of the company’s capital plan and is beginning to support both earnings growth and long-term valuation.
Risks and Considerations
No utility is without risks, and Alliant is no exception. One of the main considerations right now is the company’s high level of capital spending. Negative free cash flow has become a recurring issue, largely due to its aggressive investment in clean energy and grid modernization. While these are necessary and likely to yield long-term benefits, they can tighten financial flexibility in the near term.
Another area to watch is regulatory risk. Alliant operates in Iowa and Wisconsin, and while relations with regulators have been stable, any shift in the political or regulatory landscape could impact rate cases and returns on investment. Weather also plays a role in utility earnings, and milder temperatures in 2024 did reduce electricity demand, which in turn pressured revenues slightly.
Market volatility and macroeconomic conditions can also create headwinds. Interest rate sensitivity is another factor, especially as the company carries a large amount of long-term debt. While these are typical risks for utilities, they are important to keep in mind when evaluating long-term performance.
Final Thoughts
Alliant Energy continues to position itself as a modern, forward-looking utility. The management team is stable, focused, and aligned with long-term shareholder interests. Investments in clean energy, improved infrastructure, and customer service are central to the company’s growth strategy.
Despite some near-term pressures related to capital spending and free cash flow, the overall direction remains clear. The company is focused on balancing its financial strength with its commitment to decarbonization and grid reliability. For investors looking for steady performance and long-term value creation, Alliant Energy offers a well-managed, strategically sound utility model that continues to evolve with the energy landscape.