3.5% Dividend Wisconsin Energy's Buy Of Integrys Energy Should Propel It Forward

Wisconsin Energy (NYSE: WEC) is a strong, steady dividend paying utility. It is a stock that is comforting to own during a worrisome economic environment. WEC generates electricity, and it distributes electricity to approximately 1,133,600 customers in Wisconsin and the Upper Peninsula of Michigan and gas to 1,089,000 customers in Wisconsin (as of December 31, 2014). It also provides steam to 440 customers in metropolitan Milwaukee. These states get hot and humid in the summer, and they get extremely cold in the winter. Not many people will skimp on the energy needed to cool and to heat their homes in these states. WEC has a truly captive customer base, and that is what an investor wants. WEC also invests in commercial real estate in southeastern Wisconsin.Importantly for investors, WEC has grown EPS and its dividend every year since 2003; and that period includes the Great Recession. The table below shows how well WEC has performed compared to its competition.The BIG NEWS is the acquisition of Integrys Energy Group (NYSE: TEG) for about $9.1B in cash (26%) and stock (74%). Specifically TEG shareholders will get 1.128 WEC shares per share of TEG plus $18.58 in cash per share. WEC shareholders will get a 7%-8% dividend increase on completion of the deal. This transaction is expected to increase the regulated rate base by 70%. Wow! It is expected to be accretive to earnings. It is expected to be credit neutral. It is a strong geographic fit with WEC. It will help with regulatory... Read more