It’s after dusk in Madison, Wisconsin, July 19, 1855. Legislators have just gaslit the public and about 2,000 people have marched to the steps of the Capitol. When they get there, a few of the area’s more notable politicians deliver a series of impromptu speeches. Were it not for a hard rain that came during the fourth speech, resulting in the dispersal of the crowd, things could have gotten dark – but thankfully, the lights stayed on.
Gaslighting wasn’t always a bad thing. Back in 1855, the Madison Gas Light & Coke Company had just been granted exclusive rights to illuminate the city’s streets with gas-powered lamps. The 2,000 people who marched to the Capitol that evening weren’t duped by months of political deceit—they were genuinely thrilled. Their gathering wasn’t a protest, but a celebration of progress: the arrival of streetlamps that would finally light up Madison’s nights. In that moment, “gaslighting” meant something entirely different—it meant turning darkness into light.
Over the next 170 years, the Madison Gas Light & Coke Company would evolve—changing names, expanding its footprint, and adding a constellation of related businesses. Its modern incarnation has paid uninterrupted cash dividends for more than 110 years. On August 15, 2025, it marked a milestone few companies ever reach: 50 consecutive years of dividend increases. With that announcement, a new Dividend King has officially joined the Royal Dividends Empire.
All hail MGE Energy Inc!
And Yes, I’m All Lit Up Again
We can imagine that MGE means Madison Gas & Electric and move on to more important things.
According to Charles Schwab:
MGE Energy, Inc., through its subsidiaries, operates as a public utility holding company in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments. The company generates, purchases, and distributes electricity; purchases and distributes natural gas; owns and leases electric generating capacity; and plans, constructs, operates, maintains, and expands transmission facilities to provide transmission power services. It also generates electricity from coal-fired, gas-fired, and renewable energy sources; and provides solar and wind generation, and battery storage services. As of December 31, 2024, the company owned and operated 825 miles of overhead electric distribution lines; 1,359 miles of underground electric distribution cables; 48 substations with an installed capacity of 1.2 million kVA; and gas facilities, including 3,092 miles of distribution mains, as well as supplied electric service to approximately 167,000 customers. MGE Energy, Inc. was incorporated in 2001 and is headquartered in Madison, Wisconsin.
The graphic below does a great job of illustrating just what this holding company represents.
MGE Energy Inc [MGEE] may have energy in the name, but they belong to the Utilities sector. MGEE becomes the 11th Dividend King from the Utilities sector. Below is a list of all the Kings in the sector and the industry in which they conduct their business.
| Company | Ticker | Industry |
| American States Water Co | AWR | Water |
| Black Hill Corp | BKH | Multi |
| Canadian Utilities Ltd | CDUAF | Multi |
| California Water Service Group | CWT | Water |
| Consolidated Edison Inc | ED | Multi |
| Fortis Inc | FTS | Electric |
| H2O America | HTO | Water |
| MGE Energy Inc | MGEE | Electric |
| Middlesex Water Co | MSEX | Water |
| National Fuel Gas Co | NFG | Gas |
| Northwest Natural Holding Co | NWN | Gas |
So, they have energy in the name, but they’re a utility. And they fall under the ‘Electric’ industry, but technically they have slightly more Gas subscribers. Labels are labels. What we have is a regulated public utility holding company that has its roots buried in a company that launched 170 years ago, with dividends being paid out for over a century, and dividends increasing annually for a half century.
The Portfolio for the Ages has exposure to a multi-utility [BKH], a water utility [HTO], and a gas utility [NFG]. If one day we add another utility, I’d love it if it were an electric utility and in particular, MGEE. However, MGEE is trading at 140% of fair value right now. Trading at a P/E ratio of 24 seems consistent with where it has traded for the last decade, but the growth in EPS, while increasing every year of the last decade, has only done so at a clip of 5.8% annually. Typically, companies growing in the mid-single digits do not trade at P/E ratios this high and this is probably not sustainable for MGEE.
When great companies trade at a significant premium; one needs to have patience.