Looking for a Defensive Dividend Stock? MGE Energy (MGEE) Could Be It

MGE Energy, Inc. (NASDAQ:MGEE) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy.

MGE Energy, Inc. (NASDAQ:MGEE) is a regulated utility from Wisconsin that stands out for its strong financial position, careful capital management, and stable business model— unlike many industry counterparts that struggle with heavy debt, inflation-related cash flow challenges, and strict regulatory pricing. The company provides vital electricity and natural gas services through well-established infrastructure, benefiting from a reliable customer base and the steady economic conditions of Wisconsin.

In the first quarter of 2025, MGE Energy, Inc. (NASDAQ:MGEE) reported revenue of nearly $219 million, up 14.4% from the same period last year. The company’s operating income was $52.8 million, growing from $40.7 million in the prior-year period. In addition, its net income also grew from $33.8 million last year to $41.6 million in the most recent quarter.

MGE Energy, Inc. (NASDAQ:MGEE) is a strong dividend stock, having raised its payouts for 49 consecutive years. The company currently offers a quarterly dividend of $0.45 per share and has a dividend yield of 2.07%, as of July 23. It is among the best dividend stocks on our dividend champions list.

While we acknowledge the potential of MGEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.