Reasons to Add MGE Energy (MGEE) Stock to Your Portfolio Now

Core Viewpoint - MGE Energy Inc. (MGEE) is considered a strong investment choice due to its solid fundamentals, favorable growth estimates, and a Zacks Rank 2 (Buy) [1] Growth Projections - The Zacks Consensus Estimate for 2024 earnings has increased by 0.3% over the past 60 days, currently projected at $3.69 per share [2] - The Zacks Consensus Estimate for 2024 sales is set at $706.8 million, indicating a year-over-year growth of 2.4% [2] Dividend - MGE Energy has a long history of rewarding shareholders with cash dividends, having paid them for over 110 years and approved annual increases for the past 48 years [3] - The current dividend yield for MGEE is 2.13%, which surpasses the Zacks S&P 500 composite average yield of 1.57% [3] Debt to Capital - As of the end of the first quarter of 2024, MGE Energy's debt to capital ratio was 38.24%, significantly lower than the industry average of 54.69%, indicating efficient debt management [4] Return on Equity - The company's return on equity for the trailing 12 months stands at 11.72%, outperforming the industry average of 9.91%, reflecting higher efficiency in utilizing shareholders' funds [5] Price Performance - Over the past year, MGE Energy's stock has appreciated by 6.2%, compared to a 5.6% increase in the industry [6] Other Stocks to Consider - Other top-ranked stocks in the same industry include DTE Energy (DTE), Evergy (EVRG), and Public Service Enterprise Group (PEG), all carrying a Zacks Rank 2 [7] - Long-term earnings growth projections for these companies are 8.2% for DTE Energy, 5% for Evergy, and 5.36% for Public Service Enterprise Group [7] Recent Earnings Estimate Changes - In the past 60 days, the Zacks Consensus Estimate for 2024 earnings has risen by 0.2% for DTE Energy, and by 0.3% for both Evergy and Public Service Enterprise Group [8]