The board of directors of electricity company
Portland General Electric Company
) has approved a 0.5 cent increase to the quarterly dividend of
the company. The new quarterly dividend will be 27.5 cents. The
revised dividend is payable on Jul 15, 2013, to shareholders of
record at the close of business on Jun 25.
The new annualized dividend rate will be $1.10, reflecting growth
of 1.8% from the prior rate of $1.08. The previous increase in
the quarterly dividend rate from 26.5 cents to 27 cents was made
on Feb 22, 2012.
The current dividend yield of the company is 3.48, which is
significantly higher than the industry yield of 1.97. Portland
General Electric is increasing its dividend in regular intervals
to achieve a dividend payout ratio of 50% to 70%.
In 2013, Portland General Electric has made progress in its
strategic initiatives, including starting construction on Port
Westward 2. These initiatives will help the company to enhance
its production capabilities and remain competitive. In addition,
the projected capital expenditure of $505 million to $525 million
for the year will help in continuing development activities.
The company is a strong cash flow generator and boasts a healthy
cash balance. Net cash flow from operating activities in the
first quarter of 2013 was $165 million, with $20 million used for
dividend payouts. The strong cash flow generating ability will
easily provide the extra amount required for the increased
In addition to Portland General Electric Company, other
utility operators have also hiked their quarterly dividend rates.
American Electric Power Co.
) increased its quarterly dividend rate by 4% to 49 cents.
) hiked the quarterly rate by 3.3% to 47.5 cents.
) raised its quarterly dividend rate by 3.7% to 28 cents.
Based in Portland, Ore., Portland General Electric is a fully
integrated electric utility electricity company that caters to
nearly 830,000 residential, commercial and industrial customers
in the state. Portland General Electric Company currently retains
a Zacks Rank #2 (Buy).
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