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Pinnacle West Capital (PNW) Announces 4.8% Dividend Hike
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The board of directors of Pinnacle West Capital Corporation (PNW - Free Report) has approved a 4.8% increase in its quarterly dividend rate. The revised dividend of 65.5 cents per share will be distributed on Dec 1, 2016 to shareholders of record at the close of business on Nov 1.
The latest hike marks an increase of 3 cents from the last dividend rate of 62.5 cents per share. The new annualized dividend amounts to $2.62 per share, up from $2.50 paid earlier, resulting in a dividend yield of 3.51%. The company projects annual dividend growth of 5%.
Background
Pinnacle West’s subsidiary, Arizona Public Service, is the largest and longest-serving electric utility provider in Arizona. The state is witnessing gradual economic recovery fueled by the rapidly developing Phoenix Metropolitan Area, where jobs witnessed 3.4% growth in the second quarter, higher than the national average.
Arizona’s improving economy continues to boost Pinnacle West’s customer base as well as its retail sales. As of September, Arizona’s long-term growth fundamentals were largely intact, including population growth, job growth and economic development.
Pinnacle West makes steady investments in the diversification and expansion of its asset base. The company will emphasize primarily on expanding its traditional generation, distribution and transmission operations. Pinnacle West is the forerunner among utilities that are deploying advanced and cost-efficient infrastructure to ensure grid reliability, while minimizing service disruptions.
The Ocotillo modernization project and the Selective Catalytic Reduction Pollution Controls at the Four Corners Generating plant are part of the modernization initiatives.
Pinnacle West projects capital expenditure of $1,205 million, $1,307 million and $1,124 million in 2016, 2017 and 2018, respectively. The company expects to invest heavily in infrastructure upgrades to serve its expanding customer base.
Zacks Rank & Key Picks
Pinnacle West carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the same space include Pattern Energy Group Inc. , DTE Energy Company (DTE - Free Report) and Black Hills Corporation (BKH - Free Report) .
DTE Energy has witnessed four upward estimate revisions for the full year over the last 60 days. The company's earnings estimates have moved up from $5.06 to $5.21 per share during this period. The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Black Hills, with a Zacks Rank #2, has seen one upward estimate revision for 2016 over the last 60 days.
Pattern Energy Group has a Zacks Rank #2 and it has seen one upward estimate revision for 2016 over the last 60 days.
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Pinnacle West Capital (PNW) Announces 4.8% Dividend Hike
The board of directors of Pinnacle West Capital Corporation (PNW - Free Report) has approved a 4.8% increase in its quarterly dividend rate. The revised dividend of 65.5 cents per share will be distributed on Dec 1, 2016 to shareholders of record at the close of business on Nov 1.
The latest hike marks an increase of 3 cents from the last dividend rate of 62.5 cents per share. The new annualized dividend amounts to $2.62 per share, up from $2.50 paid earlier, resulting in a dividend yield of 3.51%. The company projects annual dividend growth of 5%.
Background
Pinnacle West’s subsidiary, Arizona Public Service, is the largest and longest-serving electric utility provider in Arizona. The state is witnessing gradual economic recovery fueled by the rapidly developing Phoenix Metropolitan Area, where jobs witnessed 3.4% growth in the second quarter, higher than the national average.
PINNACLE WEST Price
PINNACLE WEST Price | PINNACLE WEST Quote
Arizona’s improving economy continues to boost Pinnacle West’s customer base as well as its retail sales. As of September, Arizona’s long-term growth fundamentals were largely intact, including population growth, job growth and economic development.
Pinnacle West makes steady investments in the diversification and expansion of its asset base. The company will emphasize primarily on expanding its traditional generation, distribution and transmission operations. Pinnacle West is the forerunner among utilities that are deploying advanced and cost-efficient infrastructure to ensure grid reliability, while minimizing service disruptions.
The Ocotillo modernization project and the Selective Catalytic Reduction Pollution Controls at the Four Corners Generating plant are part of the modernization initiatives.
Pinnacle West projects capital expenditure of $1,205 million, $1,307 million and $1,124 million in 2016, 2017 and 2018, respectively. The company expects to invest heavily in infrastructure upgrades to serve its expanding customer base.
Zacks Rank & Key Picks
Pinnacle West carries a Zacks Rank #2 (Buy). Other favorably placed stocks in the same space include Pattern Energy Group Inc. , DTE Energy Company (DTE - Free Report) and Black Hills Corporation (BKH - Free Report) .
DTE Energy has witnessed four upward estimate revisions for the full year over the last 60 days. The company's earnings estimates have moved up from $5.06 to $5.21 per share during this period. The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Black Hills, with a Zacks Rank #2, has seen one upward estimate revision for 2016 over the last 60 days.
Pattern Energy Group has a Zacks Rank #2 and it has seen one upward estimate revision for 2016 over the last 60 days.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>