The board of directors of
NRG Energy Inc.
) has increased its quarterly dividend by 33% to 12 cents per
share. On an annualized basis, the new rate will be 48 cents per
share. The raised dividend is scheduled to be paid on May 15,
2013 to shareholders of record as of May 1.
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At the fourth-quarter 2012 earnings call, the board of directors
of the company had announced their intention to increase the
annual common stock dividend from 36 cents per share.
NRG Energy initiated its dividend in Jul 2012 and has raised the
rate of payment within the first year of imbursement. This bears
testimony to the company's objective of improving shareholders'
wealth. It is also likely to serve the dual purpose of attracting
NRG Energy's cash flow from operating activities was $1.15
billion in 2012 and cash balance was $2.1 billion as of Dec 31,
2012. Apart from dividend payment, the company's strong financial
position allows it to meet the cash requirements for share
repurchases and projects in the pipeline.
In the last few months, NRG Energy made progress on significant
deals. These include the commencement of operations at its 26
megawatt Borrego I Solar Generating Station in the northeast of
Borrego Springs, California and closure of the Gregory
cogeneration plant deal in Corpus Christi, Texas. In addition,
the company received authorization to repurchase its common stock
worth $200 million.
NRG Energy currently has a Zacks Rank #2 (Buy). Besides NRG
Energy, other well-performing stocks in the industry include
Brookfield Infrastructure Partners L.P.
Empresa Nacional de Electricidad S.A.
Pike Electric Corporation
). All the three stocks carry a Zacks Rank #1 (Strong Buy).