Ameren Corporation (AEE): A Bull Case Theory

We came across a bullish thesis on Ameren Corporation on MaxDividends’s Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on AEE. Ameren Corporation's share was trading at $104.01 as of February 3rd. AEE’s trailing and forward P/E were 19.86 and 19.38, respectively according to Yahoo Finance.

Ameren Corporation (AEE) is a quietly essential regulated utility that powers millions of homes and businesses across Missouri and Illinois through a vast network of electric transmission, distribution, generation assets, and natural gas infrastructure. Serving roughly 2.5 million electric customers and over 900,000 gas customers across a 64,000-square-mile footprint, Ameren operates almost entirely within a rate-based regulatory framework that prioritizes stability, predictability, and long-term capital recovery.

The company generates roughly 9,300–10,200 megawatts of capacity and continues to deploy billions into grid modernization, transmission hardening, smart-grid technology, cleaner generation, and infrastructure needed to support data centers and advanced manufacturing, reinforcing its role as durable backbone infrastructure rather than a cyclical growth story.

Ameren’s regulated model translates into steady earnings and a reliable dividend profile. The company pays $2.84 per share annually, offering a forward yield of about 2.74%, supported by a conservative 54.58% payout ratio. Ameren has increased its dividend for 15 consecutive years, with a strong five-year growth rate of 42%, reflecting confidence in its earnings visibility while retaining sufficient capital to fund ongoing investment and maintain balance-sheet discipline under regulator-approved returns.

Operational momentum remains intact. In Q3 2025, revenue rose to $2.176 billion from $2.003 billion a year earlier, while GAAP EPS increased to $2.35 from $2.18, driven by higher industrial demand, favorable rate outcomes, and disciplined cost control.

Importantly, Ameren’s growth is increasingly tied to load expansion rather than customer count, with large industrial users such as data centers signing long-term, multi-megawatt contracts that provide incremental, contracted revenue. Overall, Ameren represents a solid, income-oriented utility investment with resilient cash flows, visible growth from infrastructure spending, and manageable regulatory risk, offering stability rather than headline-grabbing upside.

Previously, we covered a bullish thesis on Evergy, Inc. (EVRG) by Hidden Market Gems in April 2025, which highlighted the company’s defensive utility profile, insulation from tariffs, and resilience during macro uncertainty. EVRG’s stock price has appreciated by approximately 19.38% since our coverage. Serhio MaxDividends shares a similar thesis on Ameren Corporation (AEE) but emphasizes regulated earnings visibility, dividend growth, and load-driven infrastructure expansion.

Ameren Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held AEE at the end of the third quarter which was 36 in the previous quarter. While we acknowledge the potential of AEE 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.