Ameren aims to increase your value

Article Excerpt

AMEREN CORP., $77, is still a hold. The company (New York symbol AEE; Income Portfolio, Utilities sector; Shares outstanding: 245.6 million; Market cap: $18.9 billion; Price-to-sales ratio: 3.3; Dividend yield: 2.6%; TSINetwork Rating: Average; www.ameren.com) provides power and natural gas to 3.3 million clients in Illinois and Missouri. Ameren plans to increase its quarterly dividend by 4.2%. Starting with the December 2019 payment, investors will receive $0.495 a share, up from $0.475. The new annual rate of $1.98 yields 2.6%. The company plans to spend $13 billion between 2019 and 2023 to upgrade its operations. That includes building new renewable energy projects, which will cut Ameren’s reliance on coal. The fossil fuel now supplies a high 70% of its electrical power. However, the stock trades at 23.6 times the $3.26 a share that Ameren will likely earn in 2019. That’s a somewhat high p/e for a slow-growing utility firm. firm…