EnergyBiz - January/February 2008 - (Page 34) LeaDeRshIP RoUnDtaBLes Discussing financial issues, from left to right, were Tom Fanning, Joseph Rigby, Eliot Protsch, Jim Piro and William Rogers. … we are concerned about perceptions of the state of the economy … our local economies. But we will need to raise a significant amount of capital. So we are concerned about perceptions of the state of the economy and their impact on Wall Street and the ability to raise capital at a reasonable price. Fanning The organic growth, the migration of people into the Southeast is steady as a drumbeat. Jim Piro primarily held by institutions. The dividend pressure is still there because those institutional investors want dividends, too. We try to balance that with the needs for our internal cash. prOTsch Dividends are certainly important, but in this low interest rate environment and on the front end of a major building program, our investors would want us to be responsible on the dividend. But having said that, our company has a targeted payout ratio as a percent of earnings of 60 to 70 percent over time. Fanning We’re one of the most widely held stocks in America in the electric utility industry; 60 percent of our shareholders are retail. We’re a growth and income stock. rOgErs We just reinstated our dividend this year after not having paid a dividend for five-and-a-half years. Our payout is low. We are going to be thoughtful with respect to raising that dividend. rigBy We have about 55 percent institutional holders, but the dividend is very important. Our policy is to be between 60 to 70 percent average. There is an expectation over time that you’re going to be getting steady dividend increases. EnErgyBiz Alliant Energy was among the leaders in terms of a total return in 2006 of 39 percent. How did you do it? prOTsch Coming off a low base. Our company has had an interesting evolution over the last six or seven years. Investors have recognized our focus on our core business and our divesting of businesses that were not related to that core. We repurchased $400 million of our stock and provided a very clear roadmap for the next seven or eight years in terms of what our capital expansion program entails and how we intend to finance it. We communicated EnErgyBiz Are you under pressure to raise dividends? Are your stocks still viewed as widows’ and orphans’ investments? pirO Because we just came out of bankruptcy, our stock is 34 E n E rgyB i z January/February 2008
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