MGE (MGEE) Could Be a Great Choice

Company Overview - MGE (MGEE) is a utility stock headquartered in Madison, with a year-to-date price change of 4.01% [2] - The company currently pays a dividend of $0.43 per share, resulting in a dividend yield of 2.27%, which is lower than the Utility - Electric Power industry's yield of 3.68% and the S&P 500's yield of 1.62% [2] Earnings and Growth - For the fiscal year 2024, MGE expects solid earnings growth, with the Zacks Consensus Estimate at $3.69 per share, reflecting a 13.54% increase from the previous year [5] - The company's current annualized dividend of $1.71 has increased by 2.4% from last year, and over the past five years, MGE has raised its dividend five times, averaging an annual increase of 4.95% [8] Dividend Strategy - MGE is considered a strong dividend play, appealing to income investors who prioritize consistent cash flow from investments [7] - The company's payout ratio stands at 52%, indicating that it pays out 52% of its trailing 12-month earnings per share as dividends [8]