Companhia Energetica de Minas Gerais (CIG), also known as CEMIG, recently announced that it will be paying interest on equity and dividend for the year 2012 on Jun 27. The decision for the disbursements was made at the company’s directors’ meet in Dec 2012 and the Ordinary and Extraordinary General Meetings of Stockholders held on Apr 30, 2013.
CEMIG has allocated approximately R$164 million for the payment of interest on equity. This equates to R$ 0.192340491 per share and will be paid to stockholders of record as on Dec 21, 2012 as well as to ADR holders of record as on Dec 31, 2012 . This will be the balance payment of the first instalment for 2012. In Mar 2013, interest on equity amounting to R$686 million was paid by the company.
Regarding dividends, CEMIG will disburse roughly R$609.1 million (or R$ 0.714302738 per share) to shareholders of record as on Apr 30, 2013 and ADR holders of record as on May 6, 2013.
In conjunction with the dividend payment, proceeds from the sale of fractional quantities of shares arising from stock dividend will also be paid. These fractional shares were merged and sold on May 22.
If we look into CEMIG’s first-quarter 2013 financial results, we find that the company paid approximately R$1.9 billion as interest on equity and dividends.
CEMIG is one of the largest integrated electric utilities in Brazil with approximately 97% of the company’s installed generation capacity being hydroelectric power. The Zacks Consensus Estimate for 2013 and 2014 is pegged at $1.41 per ADR and $1.33 per ADR, respectively. These represent a year-over-year decline of 42.5% for 2013 and 5.5% for 2014.
CEMIG currently has a Zacks Rank #5 (Strong Sell). Other stocks in the industry that are worth considering are Companhia Paranaense de Energia (ELP), CPFL Energia S.A. (CPL) and ALLETE, Inc. (ALE). While Companhia and CPFL carry a Zacks Rank #1 (Strong Buy), ALLETE carries a Zacks Rank #2 (Buy).
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