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    What WEC Energy Group (WEC)'s Dividend Hike and EPS Outlook Update Means For Shareholders

    Simply Wall St·12/17/2025 08:24:20
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    • In December 2025, WEC Energy Group’s board announced it plans to lift its quarterly dividend to US$0.9525 per share starting in the first quarter of 2026, implying an annual rate of US$3.81, alongside new 2026 earnings guidance of US$5.51–US$5.61 per share and projected five-year compound EPS growth of 7%–8%.
    • This combination of a higher planned payout and multi‑year earnings growth outlook signals management’s confidence in the company’s cash generation and long-term investment program.
    • We’ll now examine how WEC’s planned dividend increase interacts with its earnings growth guidance to reshape the company’s investment narrative.

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    WEC Energy Group Investment Narrative Recap

    To own WEC Energy Group, you need to be comfortable with a regulated utility that is pouring US$28 billion into its grid and generation fleet while relying on regulators to approve cost recovery. The planned 2026 dividend increase and earnings guidance support the near term income story, but they do not materially change the biggest swing factors right now, which remain financing costs and regulatory outcomes on major projects.

    The new 2026 earnings guidance of US$5.51 to US$5.61 per share is especially relevant here, because it anchors the higher planned dividend against management’s view of future profitability. For investors watching WEC’s capital plan and potential equity issuance, this guidance helps frame how much earnings headroom exists to absorb higher interest expense or dilution while still supporting the dividend and ongoing grid and renewable investments.

    Yet investors should also be aware that if long term interest rates rise while WEC is still issuing new equity and funding its US$28 billion plan, the pressure on margins and earnings could...

    Read the full narrative on WEC Energy Group (it's free!)

    WEC Energy Group's narrative projects $10.8 billion revenue and $2.1 billion earnings by 2028. This requires 5.1% yearly revenue growth and about a $0.4 billion earnings increase from $1.7 billion today.

    Uncover how WEC Energy Group's forecasts yield a $121.38 fair value, a 16% upside to its current price.

    Exploring Other Perspectives

    WEC 1-Year Stock Price Chart
    WEC 1-Year Stock Price Chart

    Five members of the Simply Wall St Community currently place WEC’s fair value between US$106 and US$121.38, highlighting how far individual views can differ. Against that backdrop, the company’s large, rate dependent capital program and related financing risks may matter more for future returns than any single year of dividend growth, so it can pay to compare several of these perspectives before deciding where you stand.

    Explore 5 other fair value estimates on WEC Energy Group - why the stock might be worth as much as 16% more than the current price!

    Build Your Own WEC Energy Group Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.