Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Natural gas-focused energy company, Questar Corporation (STR - Analyst Report) has recently increased its quarterly cash dividend payment by 6% to 18 cents per share, up from 17 cents per share paid in the last quarter. The new dividend will be paid on Jun 10, 2013, to shareholders of record as of May 24, 2013.

Importantly, for the past 41 years Questar hiked its dividend as many as 41 times. Based on the closing price of $25.44 on May 10, 2013, the proposed dividend affirms a yield of 2.8%. A steady dividend payout facilitates the long-term strategy of the company to provide attractive risk-adjusted returns to its stockholders.

The dividend hike reflects continued strong performance by the company, backed by solid operating results, good investments and a diligent execution of its strategic plan.

Founded in 1922, Salt Lake City, Utah-based Questar operates with three principal subsidiaries – Wexpro Company, Questar Pipeline, and Questar Gas Company.

Questar, after the QEP Resources (QEP - Snapshot Report) spin-off, has transformed itself into a natural gas-operated energy company. The company focuses exclusively on exploring natural gas resources while serving domestic and worldwide customers.

Moreover, Questar enjoys one of the best credit ratings in the utilities sector. This provides the company with a competitive advantage in accessing capital at a reasonable cost.

On the flip side, Questar’s inability to comply with various laws and regulations and obtain fair and timely rate relief and requisite regulatory approvals could hamstring future earnings and growth.

Questar currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

In the utility gas distribution sector, Chesapeake (CPK - Snapshot Report) and National Fuel Gas Company (NFG - Snapshot Report) are expected to significantly outperform the broader U.S. equity market over the next one to three months. Both the stocks currently retain a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%