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Dominion Resources (D) Hikes Quarterly Dividend by 7.9%
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Dominion Resources Inc. (D - Free Report) announced that its board of directors has approved an increase of 7.9% in the quarterly dividend rate. The revised quarterly dividend will amount to 75.5 cents, payable in Mar 2017, up from the prior payout of 70 cents. Thus, the new annualized dividend rate comes to $3.02, while the current dividend yield is 3.98%, better than the Utility–Electric Power industry’s yield of 3.56%.
Dominion continues to focus on maximizing shareholder wealth through regular dividend payments. Thanks to its consistent investments in regulated operations, Dominion Resources offers reliable service to its expanding customer base. Also, improvement in the net income enables the company to carry out shareholder-friendly moves. Including the latest hike, the company has increased the dividend payout over the last 14 consecutive years.
Systematic Investments
Dominion Resources’ portfolio realignment strategy of focusing on regulated assets is evident from its investments in the regulated infrastructure. Stable earnings from these assets will drive bottom-line growth at the company. Note that Dominion has decided to invest nearly $18–$20 billion during the 2016–2020 time period in various growth projects.
Dividend Target
Dominion targets dividend payout of 70–75% of its operating earnings, with an annual dividend growth rate of 8% from 2014 through 2020.
The latest increase in the annual dividend rate for 2017 is a step toward that target.
A Similar Move by a Peer
Recently, The AES Corporation (AES - Free Report) announced that its board of directors has approved a 9.1% hike in the quarterly common stock dividend, bringing the annualized payout to 48 cents per share. (Read more: AES Corp Gifts Investors with 9% Dividend Increase)
Price Movement
Over the last one year, Dominion Resource has outperformed the Zacks categorized Utility–Electric Power industry. During this period, the company’s shares surged 14%, outperforming with the industry’s 7.6% return.
Dominion’s focus on expanding its electric transmission infrastructure, natural gas facilities and midstream assets should provide material tailwinds. Contributions from the regulated and inorganic assets are driving the company’s results and will allow it to maintain its performance over the long term.
Hawaiian Electric has delivered an average positive earnings surprise of 2.38% in the trailing four quarters. The company’s 2016 earnings estimates increased 4.2% to $1.75 over the last 60 days.
CenterPoint Energy delivered an average positive earnings surprise of 5.07% in the trailing four quarters. The company’s 2016 earnings estimates were up 2.6% to $1.18in the last 60 days.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Dominion Resources (D) Hikes Quarterly Dividend by 7.9%
Dominion Resources Inc. (D - Free Report) announced that its board of directors has approved an increase of 7.9% in the quarterly dividend rate. The revised quarterly dividend will amount to 75.5 cents, payable in Mar 2017, up from the prior payout of 70 cents. Thus, the new annualized dividend rate comes to $3.02, while the current dividend yield is 3.98%, better than the Utility–Electric Power industry’s yield of 3.56%.
Dominion continues to focus on maximizing shareholder wealth through regular dividend payments. Thanks to its consistent investments in regulated operations, Dominion Resources offers reliable service to its expanding customer base. Also, improvement in the net income enables the company to carry out shareholder-friendly moves. Including the latest hike, the company has increased the dividend payout over the last 14 consecutive years.
Systematic Investments
Dominion Resources’ portfolio realignment strategy of focusing on regulated assets is evident from its investments in the regulated infrastructure. Stable earnings from these assets will drive bottom-line growth at the company. Note that Dominion has decided to invest nearly $18–$20 billion during the 2016–2020 time period in various growth projects.
Dividend Target
Dominion targets dividend payout of 70–75% of its operating earnings, with an annual dividend growth rate of 8% from 2014 through 2020.
The latest increase in the annual dividend rate for 2017 is a step toward that target.
A Similar Move by a Peer
Recently, The AES Corporation (AES - Free Report) announced that its board of directors has approved a 9.1% hike in the quarterly common stock dividend, bringing the annualized payout to 48 cents per share. (Read more: AES Corp Gifts Investors with 9% Dividend Increase)
Price Movement
Over the last one year, Dominion Resource has outperformed the Zacks categorized Utility–Electric Power industry. During this period, the company’s shares surged 14%, outperforming with the industry’s 7.6% return.
Dominion’s focus on expanding its electric transmission infrastructure, natural gas facilities and midstream assets should provide material tailwinds. Contributions from the regulated and inorganic assets are driving the company’s results and will allow it to maintain its performance over the long term.
Zacks Rank & Key Picks
Dominion Resources currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the same industry include Hawaiian Electric Industries, Inc. (HE - Free Report) and CenterPoint Energy, Inc. (CNP - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hawaiian Electric has delivered an average positive earnings surprise of 2.38% in the trailing four quarters. The company’s 2016 earnings estimates increased 4.2% to $1.75 over the last 60 days.
CenterPoint Energy delivered an average positive earnings surprise of 5.07% in the trailing four quarters. The company’s 2016 earnings estimates were up 2.6% to $1.18in the last 60 days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>