Electric utility firm
) has declared a quarterly dividend of 52.50 cents per share, an
increase of roughly 3.5% from 50.75 cents paid on Mar 6, 2014.
The dividend will likely be paid by Jun 6, 2014, to shareholders
of record as of May 5, 2014.
Southern Company − one of the largest electric utility holding
companies in the U.S − revealed that the dividend hike
represented the 13th consecutive increase. If the revised
dividend is maintained for the rest of the year, the annualized
dividend payout of the company will stand at $2.10 per share.
Based on the closing price of $45.16 as on Apr 21, 2014, the
increased dividend affirms a yield of 4.7%.
Southern Company is expected to report its first-quarter 2014
results on Apr 30, 2014. The Zacks Consensus Estimate for the
company's first-quarter is pegged at 54 cents per share.
Headquartered in Atlanta, GA, Southern Company serves both
regulated and competitive markets across the southeastern U.S. It
is a holding company for four regulated Southern electric
utilities that serve about 4.4 million customers - Georgia Power,
Alabama Power, Gulf Power, and Mississippi Power.
The company continues to earn returns that are among the highest
in the industry, while at the same time maintaining its position
as a low-cost provider of electricity with superior customer
However, Southern Company's heavy reliance on coal-generated
energy supply and lack of meaningful contribution from renewable
energy are matters of concern. In the current age of growing
emphasis on 'environment friendly or green' energy, the company
may be forced to invest to ensure regulatory compliance, which
can adversely impact profitability.
Southern Company currently carries 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.
Meanwhile, one can consider better-ranked players in the electric
utility space like
CPFL Energia SA
NRG Energy Inc
). All the stocks sport a Zacks Rank #1 (Strong Buy).
CPFL ENERGI-ADR (CPL): Free Stock Analysis
ENTERGY CORP (ETR): Free Stock Analysis
NRG ENERGY INC (NRG): Free Stock Analysis
SOUTHERN CO (SO): Free Stock Analysis Report
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