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Alliant Energy Corporation (0HCT.L)

Company Dividend Discount ModelIndustry: General UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$38.90 - $65.40$50.51
Multi-Stage$46.64 - $50.95$48.75
Blended Fair Value$49.63
Current Price$67.23
Upside-26.18%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.82%8.10%1.911.771.661.571.461.311.211.121.040.96
YoY Growth--7.89%6.54%6.20%6.90%11.64%8.17%8.29%8.18%7.76%9.52%
Dividend Yield--3.00%3.53%3.12%2.49%2.72%2.91%2.58%2.76%3.22%2.98%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)818.00
(-) Cash Dividends Paid (M)514.00
(=) Cash Retained (M)304.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)163.60102.2561.35
Cash Retained (M)304.00304.00304.00
(-) Cash Required (M)-163.60-102.25-61.35
(=) Excess Retained (M)140.40201.75242.65
(/) Shares Outstanding (M)257.38257.38257.38
(=) Excess Retained per Share0.550.780.94
LTM Dividend per Share2.002.002.00
(+) Excess Retained per Share0.550.780.94
(=) Adjusted Dividend2.542.782.94
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.39%3.39%4.39%
Fair Value$38.90$50.51$65.40
Upside / Downside-42.14%-24.88%-2.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)818.00845.71874.35903.97934.59966.25995.24
Payout Ratio62.84%68.27%73.70%79.13%84.57%90.00%92.50%
Projected Dividends (M)514.00577.36644.41715.35790.36869.62920.59

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.39%3.39%4.39%
Year 1 PV (M)524.18529.30534.42
Year 2 PV (M)531.17541.60552.12
Year 3 PV (M)535.33551.17567.32
Year 4 PV (M)536.98558.27580.18
Year 5 PV (M)536.41563.13590.89
PV of Terminal Value (M)9,339.709,804.8010,288.24
Equity Value (M)12,003.7712,548.2513,113.17
Shares Outstanding (M)257.38257.38257.38
Fair Value$46.64$48.75$50.95
Upside / Downside-30.63%-27.48%-24.22%

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