WEC EnergyNYSE: WEC

MILWAUKEE , May 22, 2024 /PRNewswire/ -- WEC Energy Group, Inc. (NYSE: WEC) today announced that it intends to offer, subject to market and other conditions, $750,000,000 in aggregate principal amount of its convertible senior notes due 2027 (the "2027 convertible notes") and $750,000,000 in aggregate principal amount of its convertible senior notes due 2029 (the "2029 convertible notes" and, together with the 2027 convertible notes, the "convertible notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). In addition, WEC Energy Group expects to grant the initial purchasers of the convertible notes an option to purchase, within a 13-day period beginning on, and including, the date the convertible notes are first issued, up to an additional $112,500,000 in aggregate principal amount of the 2027 convertible notes and up to an additional $112,500,000 in aggregate principal amount of the 2029 convertible notes.

WEC Energy Group has a strong track record of growth and plans to invest over $20 billion in fresh investments, fueling significant EPS growth for the next 5 years. Wisconsin's increasing demand for energy, including Microsoft's $3.3 billion investment in a datacenter campus, provides opportunities for WEC's growth in the state. WEC's cash flow greatly exceeds its earnings, leaving ample capital available for investment, and the company anticipates minimal equity issuance.

WEC Energy Group: On Track to Become a Dividend Aristocrat

WEC Energy's (WEC) earnings and total electric sales volume in the first quarter of 2024 have both grown compared to the previous year.

WEC Energy Group (WEC) reported earnings of $1.97 per share for the quarter, surpassing the Zacks Consensus Estimate of $1.89 per share and up from $1.61 per share in the previous year.

WEC Energy Group, a U.S. electric utility, announced on Monday that it will purchase a 90% ownership share in a solar project near Dallas, Texas for approximately $459 million.

WEC Energy is a $26 billion (by market cap) major power utility player that provides electricity to 1.6 million customers and natural gas to 3 million customers across several states. The company has been growing at a relatively fast clip for years, which has helped to fuel faster-than-average dividend growth, with a 10-year dividend growth rate of 8%. With a payout ratio of 79.1% - elevated but not uncommonly so for a power utility - the dividend should continue to grow at a rate that roughly matches business growth.

WEC Energy (WEC) continues to benefit from its strategic investment plans, focus on clean energy and customer growth.

With the broader market focused on the future potential of artificial intelligence, traditional value stocks such as regulated utilities are currently attracting little to no interest.