Printed on August twenty seventh, 2025 by Bob Ciura
The Dividend Kings are a choose group of 56 shares which have elevated their dividends for no less than 50 consecutive years. We consider the Dividend Kings are among the many highest-quality dividend progress shares to purchase and maintain for the long run.
With this in thoughts, we created a full record of all 56 Dividend Kings.
You may obtain the complete record, together with essential monetary metrics similar to dividend yields and price-to-earnings ratios, by clicking on the hyperlink under:
Â
Annually, we individually overview all of the Dividend Kings. The most recent member of the Dividend Kings record is MGE Vitality (MGEE), which lately elevated its dividend for the fiftieth consecutive 12 months.
This text will present a extra detailed evaluation of the corporate.
Enterprise Overview
MGE Vitality has grown from a small energy station in Wisconsin inbuilt 1902 to a $3.2 billion market capitalization built-in power firm.
The corporate has paid consecutive dividends for greater than 100 years and has raised its payout for the previous 50 years. MGE principally operates gasoline and electrical utilities, along with transmission and development companies.
Supply: Investor Presentation
On August 7, 2025, MGE Vitality reported outcomes for the second quarter ended June 30, 2025, exhibiting secure utility efficiency and continued funding in renewable era.
The corporate posted consolidated earnings of $32.8 million, or $0.89 per share, in contrast with $30.4 million, or $0.83 per share, in the identical quarter final 12 months.
Working income was $173.6 million, down from $182.1 million a 12 months earlier, as decrease pure gasoline utilization as a result of milder climate offset increased electrical demand and price changes.
Electrical buyer progress of 1.1% and elevated renewable era contributed positively to outcomes, with wind and photo voltaic assets supplying a bigger share of whole power wants. Working earnings rose to $49.2 million, up from $46.5 million, reflecting price administration and environment friendly operations.
The corporate invested roughly $148 million in capital tasks in the course of the first half of 2025, primarily directed towards renewable power services, grid modernization, and infrastructure upgrades to help long-term progress and reliability.
The steadiness sheet remained sturdy with fairness of $1.73 billion and a debt-to-capitalization ratio of 43%, supporting continued capital funding.
Development Prospects
Earnings-per-share have grown persistently over the previous decade, although they did encounter a short bump within the street in 2015.
Latest outcomes have been sturdy, and we consider that between its two sustainable progress catalysts of buyer acquisition and renewable asset progress, the corporate ought to be capable to obtain mid-single-digit earnings-per-share progress going ahead.
Climate can contribute positively however can simply swing ends in the opposite path. We see mid-single-digit progress for the dividend in addition to MGE is comfy with the place the payout ratio is in the present day.
Aggressive Benefits & Recession Efficiency
MGE’s high quality metrics have been roughly flat over the previous decade, because it doesn’t go after progress by way of acquisition, and its enterprise has not likely modified. Gross margins have drifted up over time however seem to have plateaued.
MGE’s curiosity protection is excellent for a utility, and we forecast this can enhance barely over time as earnings develop and MGE retains its debt at manageable ranges.
The payout ratio ought to stay round 50% as dividend progress will probably lag earnings progress, however the two must be very shut.
Supply: Investor Presentation
Total, MGE is conservatively financed and run mainly the identical means 12 months after 12 months, which means adjustments within the high quality metrics will probably be few and much between. MGE’s primary aggressive benefit is its digital monopoly in its service space.
Like many different utilities, MGE has a small however worthwhile service space the place it’s persevering with to develop its buyer base. That helped it maintain up nicely within the Nice Recession as earnings-per-share dipped barely however then recovered shortly.
Earnings-per-share efficiency in the course of the Nice Recession is under:
2007 earnings-per-share of $2.27
2008 earnings-per-share of $2.38 (4.8% improve)
2009 earnings-per-share of $2.21 (7.1% decline)
2010 earnings-per-share of $2.50 (13.1% improve)
The corporate remained extremely worthwhile in the course of the Nice Recession. This allowed it to proceed rising its dividend yearly in the course of the recession, even when earnings declined in 2009.
Valuation & Anticipated Returns
Utilizing the present share worth of $88 and anticipated earnings-per-share of $3.58 for the 12 months, MGEE inventory trades for a price-to-earnings ratio of 25.9.
Contemplating the corporate’s slow-growth nature as a utility, we consider {that a} valuation goal of 17.5 occasions earnings is a good valuation evaluation.
Subsequently, it appears that evidently MGEE inventory is considerably overvalued. We anticipate a contracting valuation a number of to cut back annual returns by 7.5% over the subsequent 5 years.
Other than adjustments within the price-to-earnings ratio, future returns will likely be pushed by earnings progress and dividend yields.
We anticipate 5.8% annual earnings progress over the subsequent 5 years, which is its common price of EPS progress over the previous 10 years.
As well as, MGEE inventory has a present dividend yield of two.2%. The dividend can also be well-protected, with an estimated payout ratio for 2025 of 53%.
In whole, we challenge that MGEE inventory will present a complete annual return of simply 0.5% by way of 2030.
Last Ideas
MGE seems overvalued proper now. We’re forecasting whole annualized returns for the subsequent 5 years to be 0.5% as a number of contraction will offset the dividend and earnings-per-share progress.
MGE has didn’t develop its earnings sooner than a mid-single-digit price for some time now and seems poised to proceed rising at a mediocre price shifting ahead.
Nonetheless, the valuation is pricing in a bit extra progress than that. MGE due to this fact is rated a maintain proper now.
Moreover, the next Certain Dividend databases include essentially the most dependable dividend growers in our funding universe:
Should you’re in search of shares with distinctive dividend traits, think about the next Certain Dividend databases:
Thanks for studying this text. Please ship any suggestions, corrections, or inquiries to help@suredividend.com.
