If you are an income investor, then ALLETE Inc (NYSE:ALE) should be on your radar. ALLETE, Inc. operates as an energy company. Over the past 10 years, the US$3.55B market cap company has been growing its dividend payments, from $1.72 to $2.24. Currently yielding 3.28%, let’s take a closer look at ALLETE’s dividend profile. View our latest analysis for ALLETE

What Is A Dividend Rock Star?

It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward

High Yield And Dependable

ALLETE’s dividend yield stands at 3.28%, which is on the low-side for Electric Utilities stocks. But the real reason ALLETE stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.

Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. ALE has increased its DPS from $1.72 to $2.24 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. These are all positive signs of a great, reliable dividend stock. ALLETE has a trailing twelve-month payout ratio of 63.13%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 63.45%, leading to a dividend yield of around 3.46%. Furthermore, EPS is forecasted to fall to $3.28 in the upcoming year.

Next Steps:

Investors of ALLETE can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then ALLETE is one worth keeping around. However, given this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three important aspects you should look at: