Dividend Coverage: This Electric Company has Increased Dividend for 11 Consecutive Years; Will Trade Ex-Dividend on June 22, 2017
LONDON, UK / ACCESSWIRE / June 21, 2017 / Pro-Trader Daily takes a closer look at Portland General Electric Co. (NYSE: POR) as the Company's stock will begin trading ex-dividend on June 22, 2017. In order to capture the dividend payout, investors must purchase the stock a day before the ex-dividend date that is by latest June 21, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On April 26, 2017, Portland General's board of directors approved a 6.3% increase in the regular quarterly common stock dividend to $0.34 per share, up from last quarter's dividend of $0.32 per share. The dividend is payable on or before July 17, 2017, to shareholders of record at the close of business on June 26, 2017.
Portland General's indicated dividend represents a yield of 2.85%, higher in comparison to the average dividend yield for the Utilities sector of 2.45%. The latest increase marks the 11th consecutive year that the Company has increased dividend.
"Today's declaration marks our eleventh consecutive annual dividend increase since going public in 2006," said Jim Piro, PGE's President and Chief Executive Officer, "Our long-term focus on operational excellence, including our continued investment in our system to keep it safe and resilient, enabled us to take another step forward in meeting our commitment to shareholders to deliver a competitive dividend within our industry."
Dividend Insights
Portland General has a dividend payout ratio of 59.9% which reflects that the Company distributes approximately $0.60 for every $1.00 earned. According to analysts' estimates, Portland General is expected to report earnings of $2.45 per share in the coming year, which is substantially higher compared to the Company's annualized dividend of $1.36, demonstrating that Portland General's dividend distribution can be comfortable covered by earnings.
As per its Q1 2017 results announced on May 05, 2017, the Company's balance sheet remains strong with stockholders' equity of $99.2 million and working capital of approximately $80.5 million as of March 31, 2017. The earnings press release also disclosed an increase in dividend Portland General stated that over the long-term, the Company is targeting a sustainable annual dividend increase of 5% to 7% and a dividend payout ratio of 50% to 70%, which reflect the Portland General's confidence in paying dividend with the announced coverage range for a long period of time and expected annual increase. This can prove attractive for investors who are looking for sustainable dividend income keeping a long-term horizon into consideration. Moreover, Portland General's stock is trading at an attractive valuation of forward P/E multiple of 19.49 which also strengthens the Company's case to be considered as an alternative stock for long-term investment.
About the Company
Portland is an integrated electric utility Company which engages in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in the state of Oregon. Portland General operates seven thermal plants; seven hydroelectric plants; and two wind farms. As of December 31, 2016, it owned an electric transmission system consisting of 1,248 circuit miles, including 287 circuit miles of 500 kilovolt line, 402 circuit miles of 230 kilovolt line, and 551 miles of 115 kilovolt line. It has 27,259 circuit miles of distribution lines. The company also purchases and sells electricity and natural gas in the wholesale market to utilities and power marketers in the United States and Canada. The company was founded in 1930.
Recent Development for Portland
On May 13, 2017, Portland announced that it has submitted a letter to the Oregon Department of Energy and another to the Oregon Department of Environmental Quality, asking for suspension of the utility's request for amendment of the site certificate for the Carty Generating Station near Boardman, Oregon as well as a related air permit application.
The amendment and permit, if approved, would allow the construction of two new generating units at Carty, if the units were selected as the least cost/lowest risk option in a future competitive bidding process for new generating resources. Portland stated that the request for the amendment was driven by the need to ensure that the Company has a viable option to secure a cost-effective dispatchable generation resource to provide reliable service to customers.
Stock Performance
At the closing bell, on Tuesday, June 20, 2017, Portland General's stock was marginally up 0.08%, ending the trading session at $47.72. A total volume of 324.19 thousand shares have exchanged hands. The Company's stock price surged 6.78% in the last three months, 10.03% in the past six months, and 12.52% in the previous twelve months. Moreover, the stock rallied 10.13% since the start of the year. The stock is trading at a PE ratio of 20.75 and has a dividend yield of 2.85%. The stock currently has a market cap of $4.24 billion.
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