Ameren Corp (AEE) Earnings: 1 Dividend That’s Here to Stay

Ameren’s 4.8% yield is above average for utilities and has significant staying power. Ameren made a smart move to slash its dividend in 2009, and it currently enjoys one of the lowest cash-flow-positive dividend payout ratios around:

AEE Cash Div. Payout Ratio TTM data by YCharts.

What awaits Ameren?
Looking ahead, the company expects 2013 diluted EPS between $2.00 and $2.20. This range reflects a slight 2% dip in regulated utilities earnings but is primarily representative of an expected $0.15 loss for its generation division.

Selling power plants is never easy, and Ameren’s near-term profitability will depend on how successfully it can shave off its generation assets — before they become liabilities. On the long-term horizon, Ameren has put itself at the whims of regulators, but it’s now in a position to pull in more stable sales and profit than ever before. With its sustainable 4.8% dividend yield and an eye toward transmission growth, things are looking up for this utility’s 2013.

The article Ameren Earnings: 1 Dividend That’s Here to Stay originally appeared on Fool.com and is written by Justin Loiseau.

Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity.You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool recommends Exelon and Southern.

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