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Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
ALLETE 5-Year Yield-on-Cost % Related Terms
FRA:AEBA vs SRE, AES: 5-Year Yield-on-Cost % Comparison
For the Utilities - Diversified subindustry, ALLETE's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ALLETE 5-Year Yield-on-Cost % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ALLETE's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where ALLETE's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of ALLETE is calculated as
ALLETE (FRA:AEBA) has a 5-Year Yield-on-Cost % of 5.81 as of Jul. 15, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on ALLETE and its competitors. This is 23% above median its historical median of 4.73. Over the past decade, ALLETE's 5-Year Yield-on-Cost % has ranged from 3.13 to 6.36.
Is ALLETE's 5-Year Yield-on-Cost % too high?
ALLETE's current 5-Year Yield-on-Cost % of 5.81 is 23% above median its 10-year median of 4.73. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 6.36. The Utilities - Regulated industry median 5-Year Yield-on-Cost % is 4.09. ALLETE's value of 5.81 is 42.1% above this industry median. Overall, ALLETE has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does ALLETE's 5-Year Yield-on-Cost % compare to SRE and AES?
ALLETE's 5-Year Yield-on-Cost % of 5.81 can be compared against companies in the Utilities - Regulated industry. The industry median 5-Year Yield-on-Cost % is 4.09. ALLETE's value of 5.81 is 42.1% above this benchmark. Historically, ALLETE's own 5-Year Yield-on-Cost % has ranged from 3.13 to 6.36 over the past decade. While the company's 10-year median is 4.73 vs. the industry median of 4.09, ALLETE has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Utilities - Regulated company?
The median 5-Year Yield-on-Cost % among Utilities - Regulated companies is 4.09, based on 435 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALLETE's current 5-Year Yield-on-Cost % of 5.81 is 42.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on ALLETE and its competitors. For the Utilities - Regulated industry, the median 5-Year Yield-on-Cost % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALLETE's current 5-Year Yield-on-Cost % is 5.81, which is 23% above median its own 10-year median of 4.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALLETE stock overvalued right now?
ALLETE (FRA:AEBA) has a current 5-Year Yield-on-Cost % of 5.81. The stock's GF Value™ is €51.55, compared to a current price of €57.50 — trading 11.5% above its estimated fair value. The current 5-Year Yield-on-Cost % is 5.81, which is 23% above median its 10-year median of 4.73 and 42.1% above the Utilities - Regulated industry median of 4.09. ALLETE's overall GF Score™ is 26/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For ALLETE (FRA:AEBA), the current 5-Year Yield-on-Cost % is 5.81 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ALLETE (FRA:AEBA) Overvalued in 2026?
Based on GuruFocus' analysis, ALLETE stock appears to be overvalued.
The current stock price of €57.50 is trading 11.5% above its estimated GF Value™ of €51.55.
Key valuation signals for FRA:AEBA:
5-Year Yield-on-Cost %: 5.81 (23% above median its 10-year median of 4.73)
GF Value™: €51.55 vs. price of €57.50 (11.5% above fair value)
Industry Position: 42.1% above the Utilities - Regulated median
No single metric tells the full story. See the FRA:AEBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALLETE Inc provides competitively-priced energy in America's Upper Midwest region and invests in transmission infrastructure and other energy-centric businesses. The company has two reportable segments. The first segment is Regulated Operations, which includes the company's regulated utilities, Minnesota Power and SWL&P, as well as its investment in ATC. ATC is a regulated utility based in Wisconsin that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota, and Illinois. The second segment is ALLETE Clean Energy, which focuses on developing, acquiring, and operating clean and renewable energy projects.
26GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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