OGE Energy Corporation
(
OGE
), a distributor of natural gas and electricity, primarily in the
South Central United States, has increased its quarterly dividend
by 4.67%, bringing the annualized dividend to $1.57 per share from
the previous payout of $1.50 per share.
The dividend increase is effective from the first quarter of
2012. The quarterly dividend, after the hike, will come to 39.25
cents per share, up from the prior payment of 37.5 cents per share.
This increased quarterly dividend will be payable on January 30,
2012, to shareholders of record as on January 10, 2012.
The company has been continuously paying dividends for the last
sixty-four years. The last increase was in December 2010 when the
company upped the annual payout to $1.50 per share from $1.45
earlier.
The company believes that a large number of its shareholders are
dependent on its dividends for a portion of their income. It
expects that cash generated from operations, proceeds from the
issuance of long- and short-term debt and funds received from OGE
Energy from proceeds from the sale of its common stock to the
public through OGE Energy's Automatic Dividend Reinvestment and
Stock Purchase Plan will be sufficient to meet anticipated cash
needs and to fund future growth opportunities over the next three
years.
Last month OGE Energy reported its third quarter 2011 results.
In the reported quarter, the company with pro forma earnings of
$1.80 per share topped the Zacks Consensus Estimate of $1.76. The
results also comfortably beat the year-ago earnings of $1.65 per
share.
Total current assets at the end of September 30, 2011, were
$643.2 million and long-term debt was $2,039.2 million. Net cash
provided by operating activities for the nine months ended
September 30, 2011, was $344.8 million as compared to $345.1
million for the nine months ended September 30, 2010.
OGE Energy Corporation is the largest electric utility in
Oklahoma, with well-positioned regulated utility and unregulated
midstream gas businesses. The company operates in a strong Oklahoma
economy, offers a high dividend yield and employs ongoing
infrastructure improvement programs.
However, we remain concerned about the volatility in its
commodity business and pending regulatory cases, along with the
unfavorable macro backdrop. The company presently retains a
short-term Zacks #2 Rank (Buy) rating. We have a long-term Neutral
recommendation on the stock.
OGE Energy Corporation distributes natural gas and electricity
through its subsidiaries(Oklahoma Gas and Electric Company or
OG&E, and Enogex). The company operates through four business
segments - electric utility, natural gas transportation and
storage, natural gas gathering and processing and natural gas
marketing. The company generally competes with
Entergy Corporation
(
ETR
) and
ONEOK Inc.
(
OKE
).
ENTERGY CORP (
ETR
): Free Stock Analysis Report
OGE ENERGY CORP (
OGE
): Free Stock Analysis Report
ONEOK INC (
OKE
): Free Stock Analysis Report
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