MGE (MGEE - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for MGE is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for MGE imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for MGEFor the fiscal year ending December 2026, this public utility holding company is expected to earn $4.02 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for MGE. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of MGE to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
MGE (MGEE - Free Report) is headquartered in Madison, and is in the Utilities sector. The stock has seen a price change of -7.84% since the start of the year. The public utility holding company is paying out a dividend of $0.51 per share at the moment, with a dividend yield of 2.81% compared to the Utility - Electric Power industry's yield of 3.18% and the S&P 500's yield of 1.38%.
Looking at dividend growth, the company's current annualized dividend of $2.03 is up 9.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for MGEE for this fiscal year. The Zacks Consensus Estimate for 2026 is $4.02 per share, with earnings expected to increase 8.06% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, MGEE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
The board of directors of MGE Energy, Inc. (Nasdaq: MGEE), today declared the regular quarterly dividend of $0.5083 per share on the outstanding shares of the company's common stock, payable December 15, 2026, to shareholders of record at the close of business December 1, 2026.
MGE Energy has increased its dividend annually for the past 51 years and has paid cash dividends for more than 115 years.
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Madison, MGE (MGEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of -10.67%. Currently paying a dividend of $0.51 per share, the company has a dividend yield of 2.9%. In comparison, the Utility - Electric Power industry's yield is 3.29%, while the S&P 500's yield is 1.44%.
Looking at dividend growth, the company's current annualized dividend of $2.03 is up 9.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for MGEE for this fiscal year. The Zacks Consensus Estimate for 2026 is $4.02 per share, representing a year-over-year earnings growth rate of 8.06%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MGEE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Shares of MGE Energy Inc. (NASDAQ:MGEE – Get Free Report) hit a new 52-week low on Wednesday. The stock traded as low as $71.42 and last traded at $71.1950, with a volume of 4230 shares trading hands. The stock had previously closed at $72.86.
Analysts Set New Price Targets A number of equities analysts have commented on MGEE shares. Wall Street Zen lowered shares of MGE Energy from a “hold” rating to a “sell” rating in a report on Saturday, September 19th. Morgan Stanley lowered their target price on MGE Energy from $74.00 to $71.00 and set an “underweight” rating for the company in a research note on Friday, September 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of MGE Energy in a research report on Wednesday, August 5th. LADENBURG THALM/SH SH upgraded MGE Energy from a “neutral” rating to a “buy” rating and set a $81.00 price target on the stock in a research note on Monday, June 8th. Finally, Bank of America began coverage on MGE Energy in a report on Thursday. They issued a “neutral” rating and a $76.00 price target for the company. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, MGE Energy has an average rating of “Hold” and a consensus target price of $76.00.
Read Our Latest Stock Report on MGE Energy
MGE Energy Stock Down 3.3% The company has a debt-to-equity ratio of 0.61, a current ratio of 1.14 and a quick ratio of 0.79. The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of 16.83 and a beta of 0.70. The firm’s fifty day moving average is $78.64 and its 200-day moving average is $78.02. MGE Energy (NASDAQ:MGEE – Get Free Report) last released its earnings results on Wednesday, August 5th. The utilities provider reported $0.89 earnings per share for the quarter, topping the consensus estimate of $0.77 by $0.12. The company had revenue of $161.19 million during the quarter, compared to the consensus estimate of $166.37 million. MGE Energy had a net margin of 19.45% and a return on equity of 11.10%. On average, sell-side analysts predict that MGE Energy Inc. will post 3.99 earnings per share for the current year.
MGE Energy Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a $0.5083 dividend. This is an increase from MGE Energy’s previous quarterly dividend of $0.4750. This represents a $2.03 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Tuesday, September 1st. MGE Energy’s dividend payout ratio is presently 49.88%.
Institutional Inflows and Outflows Large investors have recently bought and sold shares of the company. Sequoia Financial Advisors LLC acquired a new position in shares of MGE Energy in the 2nd quarter worth approximately $323,000. Integrated Wealth Concepts LLC acquired a new stake in shares of MGE Energy during the 2nd quarter valued at approximately $191,000. IFP Advisors Inc lifted its stake in MGE Energy by 41.3% during the second quarter. IFP Advisors Inc now owns 1,308 shares of the utilities provider’s stock worth $107,000 after purchasing an additional 382 shares during the last quarter. Allworth Financial LP boosted its holdings in MGE Energy by 114.6% in the second quarter. Allworth Financial LP now owns 1,972 shares of the utilities provider’s stock worth $161,000 after purchasing an additional 1,053 shares during the period. Finally, Waverly Advisors LLC acquired a new position in MGE Energy in the second quarter worth $260,000. Institutional investors own 52.58% of the company’s stock.
MGE Energy Company Profile (Get Free Report)
MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Its principal subsidiary, Madison Gas and Electric Company (MG&E), provides electric and natural gas service to residential, commercial and industrial customers in south-central Wisconsin.
The company’s operations include generating, purchasing, transmitting and distributing electricity, as well as distributing natural gas. MGE Energy’s generation portfolio includes renewable resources such as wind and solar, along with other generation and purchased-power arrangements.
Featured Articles Five stocks we like better than MGE Energy Hims & Hers Slides Nearly 7% as Legal Pressure Adds to Its Growing List of Risks Paychex Plunges, Providing the Entry Investors Have Been Waiting For The Case for Buying High-Yield General Mills Just Strengthened SanDisk’s $1,800 Breakout Turns Memory Hardware Into a Profit Story Receive News & Ratings for MGE Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for MGE Energy and related companies with MarketBeat.com's FREE daily email newsletter.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Squarepoint Ops LLC cut its holdings in shares of MGE Energy Inc. (NASDAQ:MGEE – Free Report) by 52.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 10,607 shares of the utilities provider’s stock after selling 11,936 shares during the quarter. Squarepoint Ops LLC’s holdings in MGE Energy were worth $865,000 as of its most recent SEC filing.
Several other hedge funds also recently modified their holdings of the business. BlackRock Inc. acquired a new position in MGE Energy in the second quarter worth about $496,897,000. Geode Capital Management LLC lifted its position in shares of MGE Energy by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 921,952 shares of the utilities provider’s stock worth $72,315,000 after buying an additional 3,692 shares during the period. Bank of New York Mellon Corp bought a new position in shares of MGE Energy during the 2nd quarter worth approximately $27,087,000. Deprince Race & Zollo Inc. acquired a new stake in MGE Energy in the 1st quarter valued at $21,418,000. Finally, Legal & General Group Plc acquired a new stake in MGE Energy in the 2nd quarter valued at $15,443,000. 52.58% of the stock is owned by institutional investors.
Analyst Ratings Changes A number of brokerages have commented on MGEE. Wall Street Zen lowered shares of MGE Energy from a “hold” rating to a “sell” rating in a report on Saturday. LADENBURG THALM/SH SH upgraded MGE Energy from a “neutral” rating to a “buy” rating and set a $81.00 price target on the stock in a report on Monday, June 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of MGE Energy in a research report on Wednesday, August 5th. Finally, Morgan Stanley reduced their price objective on shares of MGE Energy from $74.00 to $71.00 and set an “underweight” rating on the stock in a research note on Friday. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, MGE Energy has an average rating of “Hold” and a consensus target price of $76.00.
View Our Latest Stock Report on MGE Energy MGE Energy Trading Down 1.2% MGEE opened at $74.08 on Friday. The stock has a market capitalization of $2.80 billion, a P/E ratio of 18.20 and a beta of 0.70. The company has a current ratio of 1.14, a quick ratio of 0.79 and a debt-to-equity ratio of 0.61. MGE Energy Inc. has a 12 month low of $72.16 and a 12 month high of $87.94. The firm’s fifty day simple moving average is $79.45 and its 200 day simple moving average is $78.30.
MGE Energy (NASDAQ:MGEE – Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.12. The firm had revenue of $161.19 million for the quarter, compared to the consensus estimate of $166.37 million. MGE Energy had a return on equity of 11.10% and a net margin of 19.45%. As a group, research analysts anticipate that MGE Energy Inc. will post 3.99 EPS for the current fiscal year.
MGE Energy Increases Dividend The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were paid a $0.5083 dividend. This represents a $2.03 annualized dividend and a yield of 2.7%. The ex-dividend date was Tuesday, September 1st. This is a positive change from MGE Energy’s previous quarterly dividend of $0.47. MGE Energy’s dividend payout ratio (DPR) is presently 49.88%.
MGE Energy Profile (Free Report)
MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Its principal subsidiary, Madison Gas and Electric Company (MG&E), provides electric and natural gas service to residential, commercial and industrial customers in south-central Wisconsin.
The company’s operations include generating, purchasing, transmitting and distributing electricity, as well as distributing natural gas. MGE Energy’s generation portfolio includes renewable resources such as wind and solar, along with other generation and purchased-power arrangements.
See Also Five stocks we like better than MGE Energy J.B. Hunt’s Stock Plunges After Market Misprices Profit Warning 2 Stocks Breaking Out Post-FOMC With One Thing in Common Lennar’s Q3 Miss Hides a Stronger Operating Story Beneath the Housing Slump These 3 Stocks Are Drawing Insider Buyers for Very Different Reasons Want to see what other hedge funds are holding MGEE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for MGE Energy Inc. (NASDAQ:MGEE – Free Report).
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SummaryDividend Kings have a 50+ year track record of increasing dividends, showcasing resilience through economic challenges. I rank the Dividend Kings using my 9F Quality Scores, blending qualitative and quantitative factors for a robust, investment-grade assessment. ADP stands out as the best total-return candidate. It is undervalued, high-quality, and offering a strong projected dividend growth rate and Adjusted Chowder Number. CSL and PH are also attractive for growth, but PH is overvalued; PEP and MZTI are top income picks among higher-quality, undervalued Kings. 29 Dividend Kings are undervalued, 34 have investment-grade quality, and 20 score as high-quality, offering a range of options for diverse investment styles. Igor Zhukov/iStock via Getty Images
Dividend Kings are companies that have raised their annual dividend payouts for at least 50 consecutive years. These companies have shown remarkable resilience, consistently increasing shareholder returns through major economic recessions, market downturns, and industry disruptions.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ADP, LOW, MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways MGEE, ADM, DOLE and DGX offer low-beta exposure across utilities, staples and healthcare.MGEE has a 0.70 beta, 7.3% expected earnings growth and a 2.70% dividend yield.ADM, DOLE and DGX have betas below 0.63, with expected earnings growth of 52.2%, 11.7% and 13.2%. The Federal Reserve hiked interest rates on Wednesday at the end of its two-day policy meeting. The move was widely anticipated, but stocks tumbled after the announcement as concerns about the economy’s health continue to weigh on consumer sentiment.
Inflation remains stubbornly high, which compelled the central bank to finally hike rates, and consumers fear the situation could worsen if tensions in the Middle East continue, pushing oil prices higher.
Given this situation, it would be wise to invest in defensive stocks from the consumer staples, utilities and healthcare sectors. Four such stocks are: MGE Energy, Inc. (MGEE - Free Report) , Archer-Daniels-Midland Company (ADM - Free Report) , Dole plc (DOLE - Free Report) and Quest Diagnostics Incorporated (DGX - Free Report) .
Fed Hikes Interest RatesThe Federal Reserve hiked interest rates by a quarter percentage point on Wednesday at the end of its two-day FOMC meeting, taking its target range to 3.75% to 4%. The central bank’s Federal Open Market Committee voted 12-0 to hike interest rates.
This was also the first rate hike by the central bank in more than three years. Stocks fell following the announcement, with major indexes ending in the red for the day. Consumers’ confidence has largely stayed low over the past few weeks on fears of an economic slowdown. Also, investors have been rotating out of riskier assets and taking refuge in other defensive areas of the markets.
Inflation has remained elevated for several months, as a surge in oil prices triggered by the U.S.-Iran war and higher tariffs on several countries imposed by President Donald Trump have resulted in higher prices for goods and services.
The consumer price index (CPI) rose 0.4% month over month in August. The annual CPI rate came in at 3.4%, which remains sharply higher than the Federal Reserve’s 2% target. Core CPI, which strips out the volatile food and energy, rose 0.3% month over month in August, taking the annual rate to 2.4%.
The Federal Reserve, at the end of the meeting, also hinted at another rate hike by the end of this year. This could further make borrowing costs higher, creating pressure on consumers.
4 Defensive Stocks With UpsideMGE EnergyMGE Energy, Inc. is a public utility holding company. MGEE’s principal subsidiary, MGE, generates and distributes electricity to more than 128,000 customers in Dane County, Wisconsin (250 square miles) and purchases, transports and distributes natural gas to nearly 123,000 customers in seven south-central and western Wisconsin counties (1,375 square miles).
MGE Energy has an expected earnings growth rate of 7.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. MGE Energy has a beta of 0.70 and a current dividend yield of 2.70%. MGEE currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Archer-Daniels-Midland CompanyArcher-Daniels-Midland Company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. ADM processes oilseeds, corn, wheat, cocoa and other feedstuffs. It also engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, as well as other specialty food and feed ingredients.
Archer-Daniels-Midland Company has an expected earnings growth rate of 52.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8.5% over the last 60 days. Archer-Daniels-Midland Company has a beta of 0.62 and a current dividend yield of 2.40%. ADM currently sports a Zacks Rank #1.
Dole plcDole plc is a producer of fresh bananas and pineapples. DOLE will also have a growing presence in categories such as berries, avocados and organic produce.
Dole’s expected earnings growth rate for the current year is 11.7%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. Dole plc has a beta of 0.61 and a current dividend yield of 2.56%. DOLE currently carries a Zacks Rank #2.
Quest DiagnosticsQuest Diagnostics Incorporated provides diagnostic information services to a broad range of customers within its primary channels of physicians, hospitals, patients and consumers. DGX provides services to integrated delivery networks throughout the United States through its Collaborative Lab Solutions (formerly Professional Laboratory Services) offerings. These services help customers build and execute laboratory strategies, improve quality, reduce healthcare costs and focus on core competencies. The company is a key provider of reference testing for approximately half of U.S. hospitals.
Quest Diagnostics’ expected earnings growth rate for the current year is 13.2%. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the past 60 days. Quest Diagnostics has a beta of 0.55 and a current dividend yield of 1.39%. DGX currently carries a Zacks Rank #2.
Key Takeaways FMNB announced a $0.18 dividend, with a 4.23% yield and 40% payout ratio.MGEE declared a $0.51 dividend, with a 2.63% yield and five hikes in five years.NSSC announced a $0.17 dividend, with a 1.62% yield and six hikes in five years. Stocks have been under pressure for a while now, as concerns grow over a slowing economy. Ongoing geopolitical tensions have resulted in a surge in oil prices, which has led to a rise in inflation.
Also, fears grew last week that the Federal Reserve could finally hike interest rates next month after August jobs data came in hotter than expected. This could keep markets volatile for a longer period.
With market uncertainty still weighing on investors, those looking for assured income and a degree of protection from market volatility may want to consider dividend-paying stocks.
Dividend stocks can offer a steady income stream through regular payouts while potentially providing greater stability during periods of market turbulence. Here are three dividend stocks worth considering: Farmers National Banc Corp. (FMNB - Free Report) , MGE Energy, Inc. (MGEE - Free Report) and Napco Security Technologies, Inc. (NSSC - Free Report) .
Markets Under PressureA hotter-than-expected August jobs report released last week has raised expectations that the Fed will go for a 25-basis-point rate hike in its FOMC meeting next month. Nonfarm payrolls jumped 162,000 in August, sharply higher than the consensus estimate of a rise of 53,000, the Bureau of Labor Statistics reported on Friday.
Meanwhile, the unemployment rate remained unchanged at 4.1%. Inflation remains stubbornly high despite slowing over the past two months after oil prices somewhat eased. However, an escalation in tensions in the Middle East has seen oil prices climbing again, which has raised fears that inflation could increase once again if energy costs continue to stay high.
A rise in interest rates will further raise borrowing costs, which could affect consumers' spending power and habits and weigh on the economy.
These concerns have driven consumer confidence to fall sharply over the past several months. Consumer confidence slid to 89.4 in August, the lowest level since January, from a downwardly revised 90.2 in the month earlier.
3 Stocks That Recently Announced Dividend HikesFarmers National Banc Corp.Farmers National Banc Corp. is a one-bank holding with only one subsidiary, The Farmers National Bank of Canfield. FMNB operates in one industry, domestic banking. Farmers National Banc Corp. is a full-service national bank engaged in commercial and retail banking. FMNB’s commercial banking services include checking accounts, savings accounts, time deposit accounts, commercial, mortgage and installment loans, home equity loans, home equity lines of credit, night depository, safe deposit boxes, money orders, bank checks, automated teller machines and travelers checks. Farmers National Banc Corp. has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On Aug. 25, Farmers National Banc Corp. announced that its shareholders would receive a dividend of $0.18 a share on Sept. 30. FMNB has a dividend yield of 4.23%. Over the past five years, Farmers National Banc Corp.has increased its dividend four times, and its payout ratio presently sits at 40% of earnings. Check Farmers National Banc Corp.’s dividend history here.
MGE EnergyMGE Energy, Inc. is a public utility holding company. MGEE’s principal subsidiary, MGE, generates and distributes electricity to more than 128,000 customers in Dane County, Wisconsin (250 square miles) and purchases, transports and distributes natural gas to nearly 123,000 customers in seven south-central and western Wisconsin counties (1,375 square miles). MGE Energy has a Zacks Rank #2.
On Aug. 21, MGE Energy declared that its shareholders would receive a dividend of $0.51 a share on Sept. 15. MGEE has a dividend yield of 2.63%. Over the past five years, MGE Energy has increased its dividend five times, and its payout ratio presently sits at 47% of earnings. Check MGE Energy’sdividend history here.
Napco Security TechnologiesNapco Security Technologies, Inc. is engaged in the development, manufacture, distribution and sale of security alarm products and door security devices for commercial and residential installations. NSSC has a Zacks Rank#2.
On Aug. 20, Napco Security Technologies announced that its shareholders would receive a dividend of $0.17 a share on Oct. 2. NSSC has a dividend yield of 1.62%. Over the past five years, Napco Security Technologies has increased its dividend six times, and its payout ratio presently sits at 37% of earnings. Check Napco Security Technologies’ dividend history here.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Madison, MGE (MGEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of -0.34%. The public utility holding company is paying out a dividend of $0.47 per share at the moment, with a dividend yield of 2.43% compared to the Utility - Electric Power industry's yield of 3.18% and the S&P 500's yield of 1.34%.
Looking at dividend growth, the company's current annualized dividend of $1.90 is up 2.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, MGEE expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.99 per share, representing a year-over-year earnings growth rate of 7.26%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MGEE presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
BlackRock Inc. purchased a new position in MGE Energy Inc. (NASDAQ:MGEE – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 6,093,900 shares of the utilities provider’s stock, valued at approximately $496,897,000. BlackRock Inc. owned 16.58% of MGE Energy at the end of the most recent reporting period.
Other institutional investors have also added to or reduced their stakes in the company. Deutsche Bank AG bought a new position in shares of MGE Energy during the second quarter worth $4,160,000. Bank of New York Mellon Corp purchased a new position in MGE Energy during the second quarter valued at $27,087,000. GSA Capital Partners LLP bought a new stake in MGE Energy in the 2nd quarter valued at $760,000. Avalon Trust Co bought a new stake in MGE Energy in the 2nd quarter valued at $49,000. Finally, GAMMA Investing LLC lifted its stake in MGE Energy by 15.7% in the 2nd quarter. GAMMA Investing LLC now owns 5,072 shares of the utilities provider’s stock worth $414,000 after purchasing an additional 690 shares in the last quarter. 52.58% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes Several research analysts have commented on MGEE shares. LADENBURG THALM/SH SH raised shares of MGE Energy from a “neutral” rating to a “buy” rating and set a $81.00 price objective for the company in a report on Monday, June 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of MGE Energy in a report on Wednesday, August 5th. Finally, Morgan Stanley decreased their target price on MGE Energy from $76.00 to $74.00 and set an “underweight” rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, MGE Energy currently has a consensus rating of “Hold” and an average price target of $77.50.
Get Our Latest Analysis on MGEE MGE Energy Stock Up 0.8% Shares of NASDAQ:MGEE opened at $79.32 on Tuesday. MGE Energy Inc. has a 1 year low of $72.16 and a 1 year high of $88.01. The business has a 50 day simple moving average of $80.56 and a two-hundred day simple moving average of $78.83. The firm has a market capitalization of $3.00 billion, a PE ratio of 19.49 and a beta of 0.71. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.14 and a quick ratio of 0.79.
MGE Energy (NASDAQ:MGEE – Get Free Report) last released its earnings results on Wednesday, August 5th. The utilities provider reported $0.89 EPS for the quarter, beating analysts’ consensus estimates of $0.77 by $0.12. MGE Energy had a return on equity of 11.10% and a net margin of 19.45%.The firm had revenue of $161.19 million for the quarter, compared to analysts’ expectations of $166.37 million. On average, equities analysts predict that MGE Energy Inc. will post 3.99 EPS for the current year.
MGE Energy Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a $0.5083 dividend. This is a boost from MGE Energy’s previous quarterly dividend of $0.47. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $2.03 annualized dividend and a yield of 2.6%. MGE Energy’s dividend payout ratio is currently 46.68%.
MGE Energy Profile (Free Report)
MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Through its principal subsidiary, Madison Gas and Electric Company (MGE), the company provides regulated electric and natural gas distribution services to residential, commercial and industrial customers in south-central Wisconsin. MGE Energy’s operations encompass the generation, transmission and distribution of electricity as well as the purchase and distribution of natural gas, with an emphasis on reliable service and system resilience.
Since reorganizing as a holding company in 2001, MGE Energy has expanded its portfolio to include nonregulated subsidiaries involved in renewable energy development, energy services and infrastructure support.
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Key Takeaways Nordson Corporation declared a 94-cent dividend, extending a five-year streak of five increases.MGE Energy declared a 51-cent dividend after raising its payout six times over five years.Intuit declared a $1.38 dividend, with six increases over five years and a 27% payout ratio. The U.S. economy continues to hold up well, but the latest data tell a mixed story. Inflation remains the biggest concern, with July PCE inflation rising 3.7% year over year and core PCE rising 3.3%, both well above the Federal Reserve’s 2% target. GDP growth was revised to 1.5% in the second quarter, pointing to slower economic momentum. Consumer spending is losing momentum, rising only 0.2% in July, while retail sales fell 0.6%. Consumer confidence dropped to 89.4 in August, and consumer sentiment declined to 51. Still, the labor market remains relatively steady, with initial jobless claims at 206,000.
Markets are navigating a delicate balance. The Federal Reserve kept interest rates at 3.5-3.75%, but its minutes showed that further hikes remain possible if inflation stays elevated. Rising oil prices, which climbed above $90 a barrel, driven by U.S.-Iran tensions and risks around the Strait of Hormuz, are adding to the inflation threat. Treasury yields have also climbed sharply, with the 30-year yield near 5.3%, pressuring stocks, especially expensive technology shares. These pressures could keep inflation sticky and borrowing costs elevated, making the Fed’s policy path tricky.
For investors, the key risks are persistent inflation, weaker consumer demand, high borrowing costs, geopolitical uncertainty and stretched AI valuations. The economy is holding up, but the road ahead looks anything but smooth.
In such market conditions, cautious investors who wish to diversify their portfolios and pick dividend-paying stocks can keep a tab on some prominent names, such as Nordson Corporation (NDSN - Free Report) , Farmers National Banc (FMNB - Free Report) , MGE Energy (MGEE - Free Report) , Intuit (INTU - Free Report) and QCR Holdings (QCRH - Free Report) . Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.
Nordson Corporation
Nordson Corporation is one of the leading manufacturers as well as distributors of products and systems designed to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. This Zacks Rank #2 (Buy) company is headquartered in Westlake, OH. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
On Aug. 27, NDSN declared that its shareholders would receive a dividend of 94 cents a share on Oct. 2, 2026. NDSN has a dividend yield of 1%.
Over the past five years, NDSN has increased its dividend five times, and its payout ratio presently sits at 28% of earnings. Check Nordson Corporation's dividend history here.
Farmers National Banc
Farmers National Banc is headquartered in Canfield, OH. This Zacks Rank #3 (Hold) entity operates as a bank holding company for The Farmers National Bank of Canfield, which is engaged in commercial and retail banking.
On Aug. 25, FMNB declared that its shareholders would receive a dividend of 18 cents a share on Sept. 30, 2026. FMNB has a dividend yield of 4.3%.
In the past five years, STE has increased its dividend four times. Its payout ratio is currently 40% of earnings. Check Farmers National Banc’s dividend history here.
MGE Energy
MGE Energy is a public utility holding company in the United States. This Madison, WI-based company currently carries a Zacks Rank #2.
On Aug. 21, MGEE declared that its shareholders would receive a dividend of 51 cents a share on Sept. 15, 2026. MGEE has a dividend yield of 2.4%.
Over the past five years, MGEE has increased its dividend six times, and its payout ratio presently sits at 47% of earnings. Check MGE Energy’s dividend history here.
Intuit
Intuit is headquartered in Mountain View, CA. This Zacks Rank #3 is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally.
On Aug. 20, INTU declared that its shareholders would receive a dividend of $1.38 a share on Oct. 16, 2026. INTU has a dividend yield of 1.4%.
In the past five years, INTU has increased its dividend six times. Its payout ratio is currently 27% of earnings. Check Intuit’s dividend history here.
QCR Holdings
QCR Holdings provides full-service commercial and consumer banking, and trust and asset management services. This Moline, IL-based company currently carries a Zacks Rank #3.
On Aug. 20, QCRH announced that its shareholders would receive a dividend of 15 cents a share on Oct. 5, 2026. QCRH has a dividend yield of 0.4%.
Over the past five years, QCRH has increased its dividend two times. Its payout ratio now sits at 5% of earnings. Check QCR Holdings' dividend history here.
The Board of Directors of MGE Energy approved a 7.0% increase in the company's regular quarterly dividend to 50.83c per share on its outstanding common stock. The dividend is payable September 15, 2026, to shareholders of record as of September 1, 2026. The increase raises MGE Energy's annualized dividend rate to $2.0332 per share and marks the company's 51st consecutive year of dividend increases. "This dividend increase reflects our Board's continued confidence in MGE Energy's long-term strategy, disciplined financial management and commitment to delivering regular, predictable and sustainable returns to shareholders," said Jeff Keebler, Chairman, President and CEO.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Madison, MGE (MGEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 3.29%. The public utility holding company is paying out a dividend of $0.47 per share at the moment, with a dividend yield of 2.35% compared to the Utility - Electric Power industry's yield of 3.11% and the S&P 500's yield of 1.32%.
Looking at dividend growth, the company's current annualized dividend of $1.90 is up 2.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for MGEE for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.99 per share, with earnings expected to increase 7.26% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MGEE presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
MGE (MGEE - Free Report) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +15.58%. A quarter ago, it was expected that this public utility holding company would post earnings of $1.13 per share when it actually produced earnings of $1.32, delivering a surprise of +16.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
MGE, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $161.2 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.11%. This compares to year-ago revenues of $159.45 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
MGE shares have added about 1.9% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for MGE?While MGE has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for MGE was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $186.59 million in revenues for the coming quarter and $3.99 on $791.64 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, PPL (PPL - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 7.
This energy and utility holding company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of +9.4%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
PPL's revenues are expected to be $2.18 billion, up 7.5% from the year-ago quarter.
MADISON, Wis.--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the second quarter of 2026.
MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the second quarter of 2026 were $33.4 million, or $0.89 per share, compared to $26.5 million, or $0.72 per share, for the same period in the prior year.
Electric segment earnings increased $3.0 million for 2026 compared to 2025, reflecting strategic capital investments that grew rate base, largely driven by the successful deployment of key renewable energy projects. Gas net income remained stable compared to the second quarter of 2025. In addition, earnings benefited from approximately $3.9 million of investment gains, including returns from venture capital funds focused on technologies and innovations relevant to the evolving energy industry.
MGE Energy, Inc.
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended June 30,
2026
2025
Operating revenues
$
161,195
$
159,452
Operating income
$
32,634
$
34,223
Net income
$
33,353
$
26,498
Earnings per share - basic
$
0.89
$
0.73
Earnings per share - diluted
$
0.89
$
0.72
Weighted average shares outstanding - basic
37,351
36,540
Weighted average shares outstanding - diluted
37,456
36,569
Six Months Ended June 30,
2026
2025
Operating revenues
$
403,898
$
378,422
Operating income
$
85,786
$
87,088
Net income
$
81,834
$
68,090
Earnings per share - basic
$
2.21
$
1.86
Earnings per share - diluted
$
2.21
$
1.86
Weighted average shares outstanding - basic
36,972
36,526
Weighted average shares outstanding - diluted
37,029
36,557
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the “Risk Factors” sections in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in Madison, MGE (MGEE - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of 4.55%. Currently paying a dividend of $0.47 per share, the company has a dividend yield of 2.32%. In comparison, the Utility - Electric Power industry's yield is 3.08%, while the S&P 500's yield is 1.31%.
Looking at dividend growth, the company's current annualized dividend of $1.90 is up 2.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for MGEE for this fiscal year. The Zacks Consensus Estimate for 2026 is $3.99 per share, with earnings expected to increase 7.26% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that MGEE is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
The market expects MGE (MGEE - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis public utility holding company is expected to post quarterly earnings of $0.77 per share in its upcoming report, which represents a year-over-year change of +6.9%.
Revenues are expected to be $166.37 million, up 4.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 8.7% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for MGE?For MGE, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that MGE will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that MGE would post earnings of $1.13 per share when it actually produced earnings of $1.32, delivering a surprise of +16.81%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MGE doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Utility - Electric Power industry, Otter Tail (OTTR - Free Report) , is soon expected to post earnings of $1.48 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -20%. This quarter's revenue is expected to be $334.5 million, up 0.4% from the year-ago quarter.
The consensus EPS estimate for Otter Tail has been revised 8.9% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Otter Tail will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Madison, MGE (MGEE - Free Report) is a Utilities stock that has seen a price change of 4.27% so far this year. The public utility holding company is paying out a dividend of $0.47 per share at the moment, with a dividend yield of 2.32% compared to the Utility - Electric Power industry's yield of 2.98% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $1.90 is up 2.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.
MGEE is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.98 per share, representing a year-over-year earnings growth rate of 6.99%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that MGEE is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Madison, MGE (MGEE - Free Report) is a Utilities stock that has seen a price change of 0.55% so far this year. The public utility holding company is currently shelling out a dividend of $0.47 per share, with a dividend yield of 2.41%. This compares to the Utility - Electric Power industry's yield of 2.99% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.90 is up 2.7% from last year. Over the last 5 years, MGE has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.83%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. MGE's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, MGEE expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $3.98 per share, representing a year-over-year earnings growth rate of 6.99%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, MGEE presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
First Trust Advisors LP increased its stake in MGE Energy Inc. (NASDAQ: MGEE) by 2.3% in the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 511,382 shares of the utilities provider's stock after purchasing an additional 11,432 shares during the period. First
MGE Energy (NASDAQ: MGEE - Get Free Report) and Kenon (NYSE: KEN - Get Free Report) are both mid-cap utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation. Institutional and Insider Ownership 52.6% of MGE Energy
Last summer, MGE Energy joined the vaunted ranks of the Dividend Kings with its 50th consecutive payout raise. The demographics of MGEE's service territories are still strong, which supports yet another hike in the five-year capital spending plan. The company's S&P credit rating is the best in the nation among investor-owned utilities.
Genie Energy (NYSE:GNE – Get Free Report) and MGE Energy (NASDAQ:MGEE – Get Free Report) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.
Earnings & Valuation This table compares Genie Energy and MGE Energy”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Genie Energy $425.20 million 0.88 $12.59 million $0.80 17.57 MGE Energy $743.65 million 3.82 $135.89 million $3.72 20.89 MGE Energy has higher revenue and earnings than Genie Energy. Genie Energy is trading at a lower price-to-earnings ratio than MGE Energy, indicating that it is currently the more affordable of the two stocks.
Profitability This table compares Genie Energy and MGE Energy’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Genie Energy 1.00% 4.47% 2.16% MGE Energy 18.27% 10.60% 4.59% Dividends Genie Energy pays an annual dividend of $0.30 per share and has a dividend yield of 2.1%. MGE Energy pays an annual dividend of $1.90 per share and has a dividend yield of 2.4%. Genie Energy pays out 37.5% of its earnings in the form of a dividend. MGE Energy pays out 51.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MGE Energy has raised its dividend for 49 consecutive years. MGE Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations This is a breakdown of recent recommendations and price targets for Genie Energy and MGE Energy, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Genie Energy 0 1 0 0 2.00 MGE Energy 1 2 0 0 1.67 MGE Energy has a consensus price target of $78.00, indicating a potential upside of 0.37%. Given MGE Energy’s higher probable upside, analysts clearly believe MGE Energy is more favorable than Genie Energy.
Risk & Volatility Genie Energy has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, MGE Energy has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Insider and Institutional Ownership 49.2% of Genie Energy shares are owned by institutional investors. Comparatively, 52.6% of MGE Energy shares are owned by institutional investors. 17.4% of Genie Energy shares are owned by insiders. Comparatively, 0.2% of MGE Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary MGE Energy beats Genie Energy on 13 of the 16 factors compared between the two stocks.
About Genie Energy (Get Free Report)
Genie Energy Ltd., through its subsidiaries, engages in the supply of electricity and natural gas to residential and small business customers in the United States and internationally. It operates in two segments, GRE and Genie Renewables. The company also develops, constructs, and operates solar energy projects for commercial and industrial customers, as well as its own portfolio; provides energy brokerage and advisory services; markets community solar energy solutions; and manufactures and distributes solar panel, as well as engages in solar installation design and project management activities. Genie Energy Ltd. was incorporated in 2011 and is headquartered in Newark, New Jersey.
About MGE Energy (Get Free Report)
MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company primarily in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity and natural gas in Wisconsin and Iowa; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It generates electricity from coal-fired, gas-fired, and renewable energy sources. As of December 31, 2023, the company owned and operated 835 miles of overhead electric distribution lines; 1,330 miles of underground electric distribution cables; 49 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,066 miles of distribution mains, as well as supplied electric service to approximately 163,000 customers. MGE Energy, Inc. founded in 2001 and is headquartered in Madison, Wisconsin.
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MGE Energy Inc. (NASDAQ:MGEE – Get Free Report) was the target of a large decrease in short interest in the month of March. As of March 31st, there was short interest totaling 478,227 shares, a decrease of 22.2% from the March 15th total of 614,660 shares. Based on an average daily volume of 324,714 shares, the days-to-cover ratio is currently 1.5 days. Currently, 1.3% of the shares of the stock are sold short.
Insider Buying and Selling at MGE Energy In related news, Director James G. Berbee purchased 373 shares of the stock in a transaction dated Wednesday, March 11th. The shares were acquired at an average cost of $77.74 per share, with a total value of $28,997.02. Following the purchase, the director directly owned 9,362 shares in the company, valued at $727,801.88. This trade represents a 4.15% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.41% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On MGE Energy Several institutional investors and hedge funds have recently made changes to their positions in MGEE. Geode Capital Management LLC lifted its holdings in MGE Energy by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 921,952 shares of the utilities provider’s stock valued at $72,315,000 after purchasing an additional 3,692 shares in the last quarter. First Trust Advisors LP lifted its holdings in MGE Energy by 2.3% in the 3rd quarter. First Trust Advisors LP now owns 511,382 shares of the utilities provider’s stock valued at $43,048,000 after purchasing an additional 11,432 shares in the last quarter. Invesco Ltd. lifted its holdings in MGE Energy by 14.3% in the 2nd quarter. Invesco Ltd. now owns 238,747 shares of the utilities provider’s stock valued at $21,115,000 after purchasing an additional 29,811 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in MGE Energy by 9.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 216,173 shares of the utilities provider’s stock valued at $16,952,000 after purchasing an additional 18,877 shares in the last quarter. Finally, Speece Thorson Capital Group Inc. lifted its holdings in MGE Energy by 44.3% in the 4th quarter. Speece Thorson Capital Group Inc. now owns 195,596 shares of the utilities provider’s stock valued at $15,339,000 after purchasing an additional 60,037 shares in the last quarter. 52.58% of the stock is currently owned by hedge funds and other institutional investors.
MGE Energy Price Performance MGE Energy stock opened at $79.89 on Wednesday. MGE Energy has a 52 week low of $72.17 and a 52 week high of $94.00. The company has a quick ratio of 0.55, a current ratio of 0.77 and a debt-to-equity ratio of 0.61. The firm’s 50-day simple moving average is $78.84 and its 200 day simple moving average is $80.48. The firm has a market capitalization of $2.94 billion, a PE ratio of 21.48 and a beta of 0.79.
MGE Energy (NASDAQ:MGEE – Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The utilities provider reported $0.64 EPS for the quarter, hitting the consensus estimate of $0.64. MGE Energy had a net margin of 18.27% and a return on equity of 10.60%. The business had revenue of $189.55 million for the quarter. On average, equities research analysts predict that MGE Energy will post 3.43 EPS for the current fiscal year.
MGE Energy Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Sunday, March 15th. Investors of record on Sunday, March 1st were given a $0.475 dividend. The ex-dividend date was Friday, February 27th. This represents a $1.90 annualized dividend and a dividend yield of 2.4%. MGE Energy’s payout ratio is currently 51.08%.
Analyst Upgrades and Downgrades A number of equities analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of MGE Energy in a research note on Monday, December 29th. Morgan Stanley lowered their price target on shares of MGE Energy from $74.00 to $73.00 and set an “underweight” rating on the stock in a research note on Monday, February 2nd. Finally, Wall Street Zen raised shares of MGE Energy from a “sell” rating to a “hold” rating in a research note on Sunday, March 8th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $78.00.
View Our Latest Report on MGEE
MGE Energy Company Profile (Get Free Report)
MGE Energy, Inc is a public utility holding company headquartered in Madison, Wisconsin. Through its principal subsidiary, Madison Gas and Electric Company (MGE), the company provides regulated electric and natural gas distribution services to residential, commercial and industrial customers in south-central Wisconsin. MGE Energy’s operations encompass the generation, transmission and distribution of electricity as well as the purchase and distribution of natural gas, with an emphasis on reliable service and system resilience.
Since reorganizing as a holding company in 2001, MGE Energy has expanded its portfolio to include nonregulated subsidiaries involved in renewable energy development, energy services and infrastructure support.
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The market expects Vistra Corp. (VST - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of +202.2%.
Revenues are expected to be $5.41 billion, up 37.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 3.33% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Vistra?For Vistra, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -23.60%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Vistra will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Vistra would post earnings of $2.51 per share when it actually produced earnings of $2.18, delivering a surprise of -13.15%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Vistra doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerMGE (MGEE - Free Report) , another stock in the Zacks Utility - Electric Power industry, is expected to report earnings per share of $1.13 for the quarter ended March 2026. This estimate points to a year-over-year change of -0.9%. Revenues for the quarter are expected to be $227.06 million, up 3.7% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for MGE has been revised 1.3% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that MGE will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
MADISON, Wis.--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE), today reported financial results for the first quarter of 2026.
MGE Energy's GAAP (Generally Accepted Accounting Principles) earnings for the first quarter of 2026 were $48.5 million, or $1.32 per share, compared to $41.6 million, or $1.14 per share, for the same period in the prior year.
Electric segment earnings increased $5.5 million for 2026 compared to 2025, a result of strategic capital investments that grew rate base. This growth remains largely driven by the successful deployment of key renewable energy projects.
Gas net income exhibited steady performance, with minimal variation compared to the first quarter of 2025.
MGE Energy, Inc.
(In thousands, except per-share amounts)
(Unaudited)
Three Months Ended March 31,
2026
2025
Operating revenues
$
242,703
$
218,970
Operating income
$
53,152
$
52,865
Net income
$
48,481
$
41,592
Earnings per share - basic
$
1.32
$
1.14
Earnings per share - diluted
$
1.32
$
1.14
Weighted average shares outstanding - basic
36,590
36,511
Weighted average shares outstanding - diluted
36,620
36,539
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the “Risk Factors” sections in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission.
MGE (MGEE - Free Report) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.13 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +16.81%. A quarter ago, it was expected that this public utility holding company would post earnings of $0.64 per share when it actually produced earnings of $0.64, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
MGE, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $242.7 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.89%. This compares to year-ago revenues of $218.97 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
MGE shares have added about 2.2% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for MGE?While MGE has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for MGE was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.81 on $168.87 million in revenues for the coming quarter and $3.92 on $788.07 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Eversource Energy (ES - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This New England power provider is expected to post quarterly earnings of $1.59 per share in its upcoming report, which represents a year-over-year change of +6%. The consensus EPS estimate for the quarter has been revised 2.2% lower over the last 30 days to the current level.
Eversource Energy's revenues are expected to be $4.21 billion, up 2.3% from the year-ago quarter.
MADISON, Wis.--(BUSINESS WIRE)--MGE Energy, Inc. (Nasdaq: MGEE) (MGE Energy) announced today that it has priced its previously announced underwritten public offering of 3,300,331 shares of its common stock at a public offering price of $75.75 per share. Of the 3,300,331 shares of common stock being offered, MGE Energy agreed to issue and sell directly 990,099 shares to the underwriters in the offering, and the forward sellers (as defined below) agreed to borrow from third parties and sell to such underwriters 2,310,232 shares of common stock in connection with the forward sale agreements described below. In conjunction with the offering, MGE Energy has granted to the underwriters a 30-day option to purchase up to 495,049 additional shares of its common stock. If such option is exercised, MGE Energy may, in its sole discretion, enter into additional forward sale agreements with the forward purchasers with respect to such additional shares or issue and sell such shares directly to the underwriters.
Morgan Stanley, Guggenheim Securities, BofA Securities and J.P. Morgan are acting as joint book-running managers for the offering. Closing of the offering is expected to occur on or about May 8, 2026, subject to customary closing conditions.
In connection with the offering, MGE Energy entered into separate forward sale agreements with each of Morgan Stanley, BofA Securities and J.P. Morgan or their respective affiliates, referred to in such capacity as the forward purchasers, pursuant to which MGE Energy agreed to sell to the forward purchasers the same number of shares of common stock as are borrowed from third parties and sold by the forward purchasers or their affiliates (in such capacities, the “forward sellers”) to the underwriters. Under the forward sale agreements, the forward purchasers agreed, upon physical settlement, to purchase shares from MGE Energy at an initial forward sale price per share equal to $72.9094, subject to certain adjustments that are made to that price over the term of each forward sale agreement. Settlement of the forward sale agreements is expected to occur no later than approximately 20 months after the date of the prospectus supplement for the offering. MGE Energy may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreements.
MGE Energy intends to use the net proceeds from the sale of shares of common stock in the offering for general corporate purposes, which may include repayment of short-term debt; repurchases, retirements and refinancing of other securities; funding capital expenditures; and investments in subsidiaries. MGE Energy will not initially receive any proceeds from the sale of the common stock sold by the forward sellers to the underwriters. MGE Energy intends to use any net proceeds that it receives upon settlement of the forward sale agreements as described above.
A shelf registration statement on Form S-3, including a prospectus, related to the shares, has been filed by MGE Energy with the U.S. Securities and Exchange Commission ("SEC") and has become effective automatically upon filing. The offering will be made only by means of a preliminary prospectus supplement and the accompanying prospectus which has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus, and the final prospectus supplement, when available, may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; Guggenheim Securities, LLC, Attention: Equity Syndicate, 330 Madison Avenue, New York, New York 10017 (email: [email protected]); BofA Securities, Inc., Attn: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255-0001 (email: [email protected]); or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 or by email at [email protected] or by visiting the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric (MGE), generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements include the risks and uncertainties related to the offering such as the consummation of the offering on the terms described, the anticipated closing date, the anticipated use of the proceeds and the satisfaction of customary closing conditions. Such forward-looking statements are based on MGE Energy's current expectations, estimates and assumptions regarding future events, which are inherently uncertain. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to revise or update publicly any such forward-looking statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to our business in general, please refer to the “Risk Factors” sections in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC.
MADISON, Wis.--(BUSINESS WIRE)--The board of directors of MGE Energy, Inc. (Nasdaq: MGEE), today declared the regular quarterly dividend of $0.4750 per share on the outstanding shares of the company's common stock, payable June 15, 2026, to shareholders of record at the close of business June 1, 2026.
MGE Energy has increased its dividend annually for the past 50 years and has paid cash dividends for more than 110 years.
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
The board of directors of MGE Energy, Inc. (Nasdaq: MGEE), today declared the regular quarterly dividend of $0.4750 per share on the outstanding shares of the company's common stock, payable June 15, 2026, to shareholders of record at the close of business June 1, 2026.
MGE Energy has increased its dividend annually for the past 50 years and has paid cash dividends for more than 110 years.
About MGE Energy
MGE Energy is a public utility holding company. Its principal subsidiary, Madison Gas and Electric, generates and distributes electricity to 170,000 customers in Dane County, Wis., and purchases and distributes natural gas to 180,000 customers in seven south-central and western Wisconsin counties. MGE's roots in the Madison area date back more than 150 years.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260519152698/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
