Natural gas-focused energy company,
) has recently increased its quarterly cash dividend payment by
6% to 18 cents per share, up from 17 cents per share paid in the
last quarter. The new dividend will be paid on Jun 10, 2013, to
shareholders of record as of May 24, 2013.
Importantly, for the past 41 years Questar hiked its dividend as
many as 41 times. Based on the closing price of $25.44 on May 10,
2013, the proposed dividend affirms a yield of 2.8%. A steady
dividend payout facilitates the long-term strategy of the company
to provide attractive risk-adjusted returns to its stockholders.
The dividend hike reflects continued strong performance by the
company, backed by solid operating results, good investments and
a diligent execution of its strategic plan.
Founded in 1922, Salt Lake City, Utah-based Questar operates with
three principal subsidiaries - Wexpro Company, Questar Pipeline,
and Questar Gas Company.
Questar, after the
) spin-off, has transformed itself into a natural gas-operated
energy company. The company focuses exclusively on exploring
natural gas resources while serving domestic and worldwide
Moreover, Questar enjoys one of the best credit ratings in the
utilities sector. This provides the company with a competitive
advantage in accessing capital at a reasonable cost.
On the flip side, Questar's inability to comply with various laws
and regulations and obtain fair and timely rate relief and
requisite regulatory approvals could hamstring future earnings
Questar currently retains a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
In the utility gas distribution sector,
National Fuel Gas Company
) are expected to significantly outperform the broader U.S.
equity market over the next one to three months. Both the stocks
currently retain a Zacks Rank #1 (Strong Buy).
CHESAPEAKE UTIL (CPK): Free Stock Analysis
NATL FUEL GAS (NFG): Free Stock Analysis
QEP RESOURCES (QEP): Free Stock Analysis
QUESTAR (STR): Free Stock Analysis Report
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