Alliant shares remain the better pick

Article Excerpt

The shares of these two utilities has moved up in 2024, as falling interest rates cut the costs of their new projects. That bodes well for future dividend hikes. However, we still prefer Alliant for your new buying due to its lower reliance on coal. ALLIANT ENERGY CORP. $64 is a buy. This utility (Nasdaq symbol LNT; Income Portfolio, Utilities sector; Shares outstanding: 256.4 million; Market cap: $16.4 billion; Price-to-sales ratio: 4.1; Dividend yield: 3.2%; TSINetwork Rating: Average; www.alliantenergy.com) sells power and natural gas to 1.425 million customers in Wisconsin and Iowa. In the third quarter of 2024, Alliant’s revenue rose 0.9%, to $1.081 billion from $1.077 billion a year earlier. Cooler-than-usual weather hurt demand for power and gas for air conditioning. However, higher electric rates helped offset that drop. Earnings before unusual items also gained 9.5%, to $1.15 a share from $1.05. Alliant now plans to spend $10.9 billion on new projects and upgrades between 2025 and 2028. Renewable power and battery storage projects account…