UGI Corp to Reward Shareholders With 1.5% Dividend Hike
UGI Corporation’s UGI board of directors announced a hike in the quarterly dividend to 33 cents per share, up 1.5% from the previous rate. The annual rate of the dividend is currently at $1.32.
The quarterly dividend will be paid out on Jul 1, 2020 to shareholders of record as of Jun 15. The current annualized dividend yield of the company is 4.83% compared with the industry’s 3.43% and the Zacks S&P 500 composite’s 2.28%. This dividend payment marks the 33rd consecutive year of increase in annual dividend rate by the board of directors, reflecting strong performance of the company.
History of Dividend Payment
Utilities generally pay out regular dividends as they provide basic services, which led to stable operations and earnings. Consistent performance enables them to maintain cash flow that enables them to reward shareholders with stable return. UGI Corp has been paying dividend for 136 consecutive years. Other companies like National Fuel Gas NFG, Consolidated Edison, Inc. ED and MDU Resources MDU are rewarding their shareholders with dividend payment for more than 80 years without fail.
Currently, the global economy is facing crisis due to the coronavirus pandemic that has impacted lots of companies. Nevertheless, utilities are providing non-stop essential services and UGI Corp is among them.
Can We Expect Hikes in Coming Years?
The company strategically keeps on making acquisitions to curb competition and invest in infrastructure to increase safety and reliability. It also benefits from new residential heating and commercial customers.
The company expects that its midstream activities in northeastern and central Pennsylvania will continue to contribute to its growth. To strengthen and expand its existing infrastructure of the utilities, the company expects to invest nearly $400 million in fiscal 2020.
We believe that the improving midstream activities and a sturdy capex plan will generate sufficient funds as well as enable the company to meet financial commitments and reward shareholders.
Rank & Price Movement
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past month, shares of the company have returned 14.9% compared with the industry’s rise of 16.2%.
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Consolidated Edison Inc (ED) : Free Stock Analysis Report
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