) announced that its board of directors has approved an increase
in the quarterly dividend rate by 1.5 cents. The revised
quarterly dividend will be 47.5 cents payable on Mar 1, 2013, to
shareholders of record at the close of business on Feb 15, 2013.
ALLETE INC (ALE): Free Stock Analysis Report
DOMINION RES VA (D): Free Stock Analysis
OGE ENERGY CORP (OGE): Free Stock Analysis
ONEOK INC (OKE): Free Stock Analysis Report
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The annualized dividend rate of the company will come to $1.90,
up 3.3% from the prior rate of $1.84. The current annualized
dividend yield of the company is 4.3%. The increase in the
distributable income speaks of the company's successfully
executed investment growth strategy.
ALLETE Inc. is working consistently to develop its infrastructure
and to provide better services to its customers. The initiatives
taken by ALLETE are yielding positive results, enabling the
company to share more with shareholders. The previous hike in the
quarterly dividend rate was on Jan 12, when the rate was raised
to 46 cents from 44.5 cents.
Cash flow from operating activities at the end of the first nine
months of 2012 was $195.5 million versus $185.1 million in the
comparable period last year. During the first nine months the
company utilized $52.2 million for dividend payouts.
The long-term objective of the company is to ensure earnings
growth of 5% per year (2010 being the base year) and to maintain
a competitive dividend payout. We believe the initiatives taken
by ALLETE to develop the transmission system and generate power
from renewable sources will provide adequate returns enabling the
company to fulfill its objectives.
The shareholders too reacted positively to the news. The shares
gained 1.02% ending at $44.51 per share at the end of Jan 23.
ALLETE Inc. currently has a short-term a Zacks Rank #3 (Hold).
Besides ALLETE, a few other utility operators have also raised
their quarterly dividend rates in recent months. While
) increased its quarterly dividend by 9%,
Dominion Resources Inc.
OGE Energy Corporation
) raised it by 6.6% and 6.37%, respectively.
Minnesota-based ALLETE, Inc. is a diversified utility having
operations in Florida, North Dakota and Wisconsin. The company
was founded in 1906. With a market capitalization of $1.68
billion, the company has 1,315 full-time employees.