3.04% Dividend Yield, 22 Years of Dividend Hikes – A Midwest Powerhouse With a Renewables Edge
Renewables-Fueled Utility Delivering Shareholder Consistency
You know those quiet utilities that keep the lights on across vast swaths of the heartland, powering farms, factories, and now massive data centers without ever missing a beat? This one stands out by aggressively chasing renewables while locking in predictable cash flows from regulated rates. It’s grown its customer base to over a million electric users, ramped up wind and solar capacity ahead of peers, and turned booming tech demand into a growth engine—all while delivering shareholder-friendly returns year after year. The blend of stability and forward momentum makes it a standout in a sector often dismissed as sleepy.
Alliant Energy (LNT)
Financial Score: 86 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.Alliant Energy operates as a regulated utility in Iowa and Wisconsin, delivering electricity to about 1.01 million customers and natural gas to 430,000 through subsidiaries Interstate Power and Light (IPL) and Wisconsin Power and Light (WPL). Headquartered in Madison, it’s evolved from traditional coal and gas roots into a renewables leader, with thousands of megawatts in wind and solar already online. Key milestones include securing multi-gigawatt data center contracts that promise explosive load growth, plus a massive capex ramp-up to fuel the transition.
Dividends That Deliver
Handing out $2.03 annually with a 3.04% yield feels like finding a reliable old friend in your portfolio—especially after 22 straight years of hikes. The payout ratio sits at 63.88%, comfy enough to cover growth without skimping on reinvestment. That 34% surge over five years? It’s no fluke; regulated revenues and conservative leverage keep the checks flowing predictably. Management’s eyeing $2.14 for 2026, signaling confidence in the business model’s resilience amid rising demand.
Q3 Earnings Snapshot
The latest report covers Q3 2025 (ended September 30, released November 6, 2025), showing revenues climbing to $1,210 million from $1,081 million a year ago. Operating income hit $349 million, up from $313 million, fueled by rate hikes and renewables ramp-up. Net income was $281 million with GAAP EPS at $1.09 (ongoing non-GAAP $1.12), though slightly off prior-year peaks due to maintenance costs and depreciation.
Accelerating Into Growth Mode
Alliant is supercharging expansion with 3 GW of locked-in data center contracts, eyeing a 50% peak load jump by 2030 across IPL and WPL. That’s backed by a $13.4 billion capex plan through 2029 (up 17% from prior forecasts), heavy on renewables like 940 MW solar and storage in 2025 alone, plus gas and grid upgrades. Retail electric customers grew to 1,006,524, with electric sales up to 9,197 GWh quarterly. This positions Alliant to capture Midwest tech boom while renewables hedge fuel volatility.
Windfall Pioneer
Alliant’s wind empire spans over 1,800 MW—the Midwest’s biggest—dating back to early 2000s bets that slashed emissions and stabilized costs long before mandates kicked in. Fun twist: its QTS Madison data center deal (900 MW) builds on that green cred, turning gusty Iowa plains into a revenue machine for hyperscalers.
Investment Verdict
Tying it together: 3.04% yield, 22-year streak, 63.88% payout, and 34% 5Y growth paint a dividend machine humming on regulated rails. Business trends scream upside—data centers, renewables, rate base ballooning to $22.9B by 2028—offset by execution risks in capex timing. Financial Score: 86. Solid mid-tier reliability; great for yield hunters eyeing energy transition, but watch regs and rates. Not flawless, but damn close for passive income plays.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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The data center angle is interesting and kinda underappreciated. Everyone talks about AI power demands but utilities that already have the renewables infrastructure and the reg relationships to expand fast are gonna be the real winners. 22 years of hikes is serious credability too. I looked at LNT a while back but went with a diferent utility, might be time to revisit this one.