Ameren Corp (AEE) Earnings: One Super Sustainable Dividend Stock

Regulation elation
For Ameren, fuel price wars will matter less and less as it heads into regulation. There may be incredible winners (and losers) from strategic picks for unregulated energy portfolios, but Ameren Corp (NYSE:AEE) has opted for potentially smaller but inarguably steadier sales for its dividend stock income investors.

Looking ahead, Ameren still needs to offload three gas-fired energy centers, which it expects to do by the end of the year. And now that it’s fully immersed in regulatory waters, the utility will need to fight hard for approvals.

Regulatory wins for Missouri and Illinois transmission services helped boost earnings this past quarter, and the utility expects to invest $2.2 billion in transmission projects by 2017. Over the four years, the utility expects to grow its rate base at an above-average 7% compound annualized growth rate.

Is Ameren A+ material?
In fiscal 2012, Ameren Corp (NYSE:AEE)’s net income dropped into the red for a whopping $974 million loss. But things are looking up — and fast — for this strategically regulating utility. With its current 4.4% dividend yield and sustainable sales for the years ahead, I’m making an “outperform” call on my Motley Fool CAPS page for this dividend stock and am looking forward to seeing where it heads in the quarters to come.

The article Ameren Earnings: 1 Super Sustainable Dividend Stock originally appeared on Fool.com and is written by Justin Loiseau.

Motley 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.

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