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PSEG (PEG) Rewards Shareholders With 5.3% Dividend Hike
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Public Service Enterprise Group Inc. (PEG - Free Report) , also known as PSEG, recently announced that its board of directors has approved a 5.3% increase in its quarterly dividend rate. The revised quarterly dividend will be 60 cents, payable on Mar 29, 2024, to shareholders of record at the close of business on Mar 8, 2024.
The company’s new annualized dividend rate is $2.40 per share, resulting in an annualized dividend yield of 4.10%, based on its share price of $58.55 as of Feb 13, 2024. The company’s current dividend yield is better than the Zacks S&P 500 composite’s 1.31% as well as the industry’s 3.79%.
PEG’s History of Dividend Payment
The companies that are involved in utility services generally have stable operations and earnings. Consistent performance and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
In line with this, Public Service Enterprise Group has been consistently paying dividends for the last 117 years. The current increase represents the company’s 13th consecutive annual increase. During the nine months ended Sep 30, 2023, PEG paid $853 million as dividend on common stock to its shareholders, which was 5.3% higher than the amount it paid a year ago.
Can We Expect Hikes in the Coming Years?
Public Service Enterprise Group’s dividend payment history indicates that the company has been performing steadily and generating enough cash flow to distribute as dividends to its shareholders.
As of Sep 30, 2023, PEG had a total cash and cash equivalents of $57 million. For nine months ended Sep 30, 2023, the company had cash inflow from operating activities worth $3.10 billion, reflecting a massive improvement of 342% from the previous year.
The meaningful returns from a company’s investments also allow it to duly reward its shareholders. Notably, Public Service Enterprise Group continues to make systematic investments to strengthen its electric and gas infrastructure. During the 2023-2027 period, PEG plans to spend $15.5-$18 billion. These investments will allow the company to generate strong cash flows and, thus, offer attractive returns to its shareholders in terms of robust dividend payouts.
For 2023-2027, PEG is committed to delivering 5-7% earnings per share growth. This reinforces its financial prowess through strong earnings and should enable it to make enhanced dividend disbursements.
Utilities’ Legacy of Dividend Payment
Public Service Enterprise Group is not the only one in the utility space with a long dividend payment history. Many other utilities boast a track record of increasing dividends and have done so recently. Some of these are:
Ameren (AEE - Free Report) : On Feb 9, 2024, Ameren raised its quarterly dividend to 67 cents, marking a 6.3% increase. The company’s new annualized dividend rate is $2.68 per share. AEE’s payout currently is 57% of earnings.
The current dividend yield of AEE is 3.93%, better than the Zacks S&P 500 composite’s yield of 1.31%. The stock’s long-term (three to five years) earnings growth is pegged at 5.9%.
CMS Energy (CMS - Free Report) : On Feb 1, 2024, CMS Energy raised its quarterly dividend to 51.50 cents, marking a 5.6% increase. The company’s new annualized dividend rate is $2.06 per share.
The current dividend yield of CMS is 3.67%, better than the Zacks S&P 500 composite. The stock’s long-term earnings growth is pegged at 7.7%.
NRG Energy (NRG - Free Report) : On Jan 19, 2024, NRG Energy raised its quarterly dividend to 40.75 cents, marking an 8% increase. The company’s new annualized dividend rate is $1.63 per share. NRG’s payout currently is 29% of earnings.
The current dividend yield of NRG is 3.14%, better than the Zacks S&P 500 composite. The stock’s long-term earnings growth is pegged at 13.8%.
Price Performance
Over the past year, shares of PEG have lost 5.2% compared with the industry’s 10.9% decline.
Image: Bigstock
PSEG (PEG) Rewards Shareholders With 5.3% Dividend Hike
Public Service Enterprise Group Inc. (PEG - Free Report) , also known as PSEG, recently announced that its board of directors has approved a 5.3% increase in its quarterly dividend rate. The revised quarterly dividend will be 60 cents, payable on Mar 29, 2024, to shareholders of record at the close of business on Mar 8, 2024.
The company’s new annualized dividend rate is $2.40 per share, resulting in an annualized dividend yield of 4.10%, based on its share price of $58.55 as of Feb 13, 2024. The company’s current dividend yield is better than the Zacks S&P 500 composite’s 1.31% as well as the industry’s 3.79%.
PEG’s History of Dividend Payment
The companies that are involved in utility services generally have stable operations and earnings. Consistent performance and the ability to generate cash flows allow utilities to reward shareholders with regular dividends.
In line with this, Public Service Enterprise Group has been consistently paying dividends for the last 117 years. The current increase represents the company’s 13th consecutive annual increase. During the nine months ended Sep 30, 2023, PEG paid $853 million as dividend on common stock to its shareholders, which was 5.3% higher than the amount it paid a year ago.
Can We Expect Hikes in the Coming Years?
Public Service Enterprise Group’s dividend payment history indicates that the company has been performing steadily and generating enough cash flow to distribute as dividends to its shareholders.
As of Sep 30, 2023, PEG had a total cash and cash equivalents of $57 million. For nine months ended Sep 30, 2023, the company had cash inflow from operating activities worth $3.10 billion, reflecting a massive improvement of 342% from the previous year.
The meaningful returns from a company’s investments also allow it to duly reward its shareholders. Notably, Public Service Enterprise Group continues to make systematic investments to strengthen its electric and gas infrastructure. During the 2023-2027 period, PEG plans to spend $15.5-$18 billion. These investments will allow the company to generate strong cash flows and, thus, offer attractive returns to its shareholders in terms of robust dividend payouts.
For 2023-2027, PEG is committed to delivering 5-7% earnings per share growth. This reinforces its financial prowess through strong earnings and should enable it to make enhanced dividend disbursements.
Utilities’ Legacy of Dividend Payment
Public Service Enterprise Group is not the only one in the utility space with a long dividend payment history. Many other utilities boast a track record of increasing dividends and have done so recently. Some of these are:
Ameren (AEE - Free Report) : On Feb 9, 2024, Ameren raised its quarterly dividend to 67 cents, marking a 6.3% increase. The company’s new annualized dividend rate is $2.68 per share. AEE’s payout currently is 57% of earnings.
The current dividend yield of AEE is 3.93%, better than the Zacks S&P 500 composite’s yield of 1.31%. The stock’s long-term (three to five years) earnings growth is pegged at 5.9%.
CMS Energy (CMS - Free Report) : On Feb 1, 2024, CMS Energy raised its quarterly dividend to 51.50 cents, marking a 5.6% increase. The company’s new annualized dividend rate is $2.06 per share.
The current dividend yield of CMS is 3.67%, better than the Zacks S&P 500 composite. The stock’s long-term earnings growth is pegged at 7.7%.
NRG Energy (NRG - Free Report) : On Jan 19, 2024, NRG Energy raised its quarterly dividend to 40.75 cents, marking an 8% increase. The company’s new annualized dividend rate is $1.63 per share. NRG’s payout currently is 29% of earnings.
The current dividend yield of NRG is 3.14%, better than the Zacks S&P 500 composite. The stock’s long-term earnings growth is pegged at 13.8%.
Price Performance
Over the past year, shares of PEG have lost 5.2% compared with the industry’s 10.9% decline.
Image Source: Zacks Investment Research
Zacks Rank
Public Service Enterprise Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.