MGE Energy raises dividend to $0.45 per share

MADISON, Wis. - MGE Energy, Inc. (NASDAQ:MGEE) announced an increase in its quarterly dividend rate to $0.45 per share, marking a 5.3% rise from the previous dividend. The new dividend will be distributed on September 15, 2024, to shareholders who are on record as of September 1, 2024. This adjustment elevates the annualized dividend from $1.71 to $1.80 per share.

The company's leadership emphasized the hike as a reflection of its dedication to delivering value to both customers and shareholders. Jeff Keebler, Chairman, President and CEO of MGE Energy, stated, "Today's action by our board reinforces our commitment to regular, predictable and sustainable dividend growth and it signals the continued strength and resilience of MGE Energy's long-term business strategy for building your community energy company for the future."

MGE Energy has a history of consistent dividend growth, having increased its dividend annually for the last 49 years. Additionally, the company boasts a track record of paying cash dividends for over 110 years, showcasing its longstanding financial stability and performance.

The parent company of Madison Gas and Electric, MGE Energy is a utility holding company that has been an integral part of the Madison area for more than 150 years. Madison Gas and Electric, the main subsidiary, provides electric service to approximately 163,000 customers and delivers natural gas to roughly 176,000 customers across several Wisconsin counties.

This dividend increase is based on a press release statement from MGE Energy, Inc. and reflects the company's strategic financial management and commitment to shareholder returns.

In other recent news, MGE Energy, Inc. has declared a regular quarterly dividend of $0.4275 per share, continuing its long-standing tradition of returning value to shareholders. This dividend is payable on June 15, 2024, to shareholders of record as of the close of business on June 1, 2024. MGE Energy has a history of increasing its dividend annually for the past 48 years and has consistently paid cash dividends for over 110 years. This regular dividend payment reflects MGE Energy's commitment to its shareholders and is indicative of its financial health and stable revenue streams from its utility operations. The company's principal subsidiary, Madison Gas and Electric, serves a significant customer base, providing electricity to approximately 163,000 customers in Dane County, Wisconsin, and distributing natural gas to about 176,000 customers across seven south-central and western Wisconsin counties. These are some of the recent developments surrounding MGE Energy.

InvestingPro Insights

MGE Energy's recent announcement of a dividend increase is a testament to the company's financial health and its ability to consistently return value to its shareholders. With a market capitalization of $3.14 billion, MGE Energy is a significant player in the utility sector. The company's dedication to dividend growth is further highlighted by an impressive track record, having raised its dividend for 31 consecutive years, a detail that underscores its financial reliability and disciplined approach to capital management.

The company's commitment to its dividend strategy is also reflected in its financial metrics. MGE Energy's P/E ratio stands at 27.11, which, while indicating a higher valuation relative to near-term earnings growth, also suggests investor confidence in the company's stability. Additionally, the company's dividend yield as of late May 2024 is 1.99%, coupled with a dividend growth of 4.91% over the last twelve months. These figures point towards MGE Energy's ability to maintain and grow its dividend payouts, a key consideration for income-focused investors.

InvestingPro Tips for MGE Energy also reveal that the company has maintained dividend payments for an impressive 54 consecutive years, providing a sense of security for those seeking steady income streams. Moreover, the company has been trading near its 52-week high, with a price that is 96.32% of the peak, indicating strong market performance. For investors looking for more insights, there are additional InvestingPro Tips available that provide a deeper analysis of MGE Energy's financials and market positioning.

For those interested in learning more about MGE Energy's financial health and investment potential, additional InvestingPro Tips can be found at the dedicated InvestingPro page for MGE Energy: https://www.investing.com/pro/MGEE.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.