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AGL Resources (GAS) Board Approves a 4.1% Dividend Hike - Analyst Blog

Energy services holding company, AGL Resources Inc ( GAS ) declared that it has got approval from its board of directors to increase its quarterly dividend by 4.1% to 51 cents from the prior dividend of 49 cents. The new dividend will likely be paid on Mar 1, 2015, to shareholders of record as of Feb 13.

On an annualized basis, the new dividend will be $2.04 per share. Based on the closing price of $57.19 as of Feb 3, 2015, the increased dividend reflects a yield of 3.6%.

The company has paid dividends in each of the last 268 quarters for more than 60 years and the latest announcement marks the 269th payout. This represents AGL Resources' excellent operating performance for many years and reflects the company's strong commitment to shareholders.

Founded in 1856, Atlanta, GA-based AGL Resources' principal business is gas distribution. Following the Dec 2011 acquisition of Naperville, IL-based Nicor Inc., AGL Resources has become the largest domestic natural gas-only distribution entity with about 4.5 million customers across seven states.

However, we are concerned as the company has lowered its 2014 earnings guidance to $2.60-$2.70 per share from the prior projection of $2.80-$2.90.

Currently, AGL Resources carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, better-ranked players in the energy sector include World Fuel Services Corp. ( INT ), InterOil Corporation ( IOC ) and Golar LNG Partners LP ( GMLP ). All these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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