Wunderlich Maintains Buy, PT of $45 on Alliant Energy

Wunderlich reiterates its Buy rating and $45 price target on Alliant Energy Corporation (NYSE: LNT) as the company announces a 6% dividend.

Wunderlich says, “The company raised the common dividend from an annual rate of $1.70 to $1.80. LNT's dividend policy targets a dividend payout ratio of 60%-70%. Based on our 2012 EPS estimate of $2.91, the dividend payout will be 62% in 2012. With a 7% earnings growth rate over the next three years and a dividend toward the lower end of the payout target, it is possible we could see dividend growth acceleration as management executes its strategy over the next three years.”

LNT closed at $41.60 per share on Friday.