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PNM Resources to Reward Shareholders with Dividend Hike
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PNM Resources, Inc.’s (PNM - Free Report) board of directors announced a quarterly dividend hike to 29 cents per share from 26.5 cents. This will result in an annualized dividend of $1.16, which marks a hike of 9.4%. The revised quarterly dividend will be payable on Feb 15, 2019 to shareholders of record as of Feb 1, 2019.
The company intends to distribute 50-60% of annual ongoing earnings as dividends. The company has affirmed consolidated ongoing earnings guidance for 2019 in the range of $2.08-$2.18 per diluted share, which represents a payout ratio of 54.5% from the midpoint of the earnings guidance.
What Led to the Dividend Hike?
The company’s cash flow for operating activities at end of the first nine months of 2018 increased 12.1% on a year-over-year basis. The strong cash flow generation capacity will enable the company to generate additional funds required for dividend disbursement. The current annualized dividend yield of the company is 2.65% higher than the Zacks S&P 500 composite’s 1.98%.
The City of Albuquerque, which comprises the company’s large customer base, is creating job opportunities with new facilities and activities. Economic development in New Mexico is expected to create more demand for utility services in 2019.
PNM Resources’ 2020-2021 investment plans include an amount of $250 million for transmission and renewable energy expansion in New Mexico. For the generation portfolio transformation, the company plans to invest up to $465 million through 2018-2022. Ongoing investments will strengthen infrastructure and rate hikes will boost the financial position of the company. This will enable it to hike dividend consistently.
Utilities Continue to Reward Shareholders
Along with PNM Resources, other utility players are also revising dividend rates at regular intervals. During the second half of 2018, Duke Energy Corporation (DUK - Free Report) hiked quarterly rate by 4.2%. Ameren Corporation (AEE - Free Report) and American Electric Power Company, Inc (AEP - Free Report) raised quarterly dividend rates by 8.1% and 3.8%, respectively.
PNM Resources’ shares have rallied 24.8% in the past six months compared with the industry’s rise of 13.1%.
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PNM Resources to Reward Shareholders with Dividend Hike
PNM Resources, Inc.’s (PNM - Free Report) board of directors announced a quarterly dividend hike to 29 cents per share from 26.5 cents. This will result in an annualized dividend of $1.16, which marks a hike of 9.4%. The revised quarterly dividend will be payable on Feb 15, 2019 to shareholders of record as of Feb 1, 2019.
The company intends to distribute 50-60% of annual ongoing earnings as dividends. The company has affirmed consolidated ongoing earnings guidance for 2019 in the range of $2.08-$2.18 per diluted share, which represents a payout ratio of 54.5% from the midpoint of the earnings guidance.
What Led to the Dividend Hike?
The company’s cash flow for operating activities at end of the first nine months of 2018 increased 12.1% on a year-over-year basis. The strong cash flow generation capacity will enable the company to generate additional funds required for dividend disbursement. The current annualized dividend yield of the company is 2.65% higher than the Zacks S&P 500 composite’s 1.98%.
The City of Albuquerque, which comprises the company’s large customer base, is creating job opportunities with new facilities and activities. Economic development in New Mexico is expected to create more demand for utility services in 2019.
PNM Resources’ 2020-2021 investment plans include an amount of $250 million for transmission and renewable energy expansion in New Mexico. For the generation portfolio transformation, the company plans to invest up to $465 million through 2018-2022. Ongoing investments will strengthen infrastructure and rate hikes will boost the financial position of the company. This will enable it to hike dividend consistently.
Utilities Continue to Reward Shareholders
Along with PNM Resources, other utility players are also revising dividend rates at regular intervals. During the second half of 2018, Duke Energy Corporation (DUK - Free Report) hiked quarterly rate by 4.2%. Ameren Corporation (AEE - Free Report) and American Electric Power Company, Inc (AEP - Free Report) raised quarterly dividend rates by 8.1% and 3.8%, respectively.
Zacks Rank & Price Movement
PNM Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PNM Resources’ shares have rallied 24.8% in the past six months compared with the industry’s rise of 13.1%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>