Diamond Hill Capital Management, LLC on Ameren Corporation
Thesis
Diamond Hill added Ameren for a combination of regulated-utility stability and long-term growth. The business benefits from a supportive regulatory environment and a strong balance sheet. Its projected rate-base expansion should provide a visible source of earnings growth. The holding introduces an essential-infrastructure compounder into the broader large-cap value portfolio.
“its attractive rate base growth outlook should also support long-term growth.”
Key risks
- An unfavorable change in the regulatory environment could constrain returns
- Delays or cost overruns in rate-base investment could slow growth
- Rising interest rates may weigh on utilities