The early bird gets the dividend worm
“Today’s action by our board of directors is underscored by the company’s sound financial position and positive free cash flow,” said Chairman, President, and CEO Gale Klappa in a statement. “This marks yet another positive step toward making our dividend payout more competitive with our peers across the utility industry.”
Looking ahead, Wisconsin Energy Corporation (NYSE:WEC) also reaffirmed its dividend payout ratio goal of 65%-70% of earnings in 2017.
Weighing in on biomass
“Today marks another achievement guided by Dominion Resources, Inc. (NYSE:D)’s philosophy that balanced fuel diversity – from coal to natural gas to nuclear to renewables – leads to reasonable rates that best serve the needs and interests of customers and shareholders,” said Dominion Resources, Inc. (NYSE:D) Generation CEO David Christian in a statement.
The other two units are expected to come on line by 2014, with total conversion costs estimated at $165 billion.
Down with the old
Source: Florida Power & Light
According to NextEra Energy, Inc. (NYSE:NEE), its “Clean Energy Center” will use 35% less fuel per MW-hour, cut carbon emissions in half, and reduce air pollution by more than 90%. With the old infrastructure out of the way, construction is expected to be completed in 2016.
Integrys Energy Group, Inc. (NYSE:TEG) got the regulatory thumbs-up for a $220 million modernization project in Wisconsin Energy Corporation (NYSE:WEC) last week. While the main reason for the renovation is lack of electricity reliability, the upgrade will add on 1,000 miles of distribution line and 400 miles of distribution automation equipment.
For Wisconsin Energy Corporation (NYSE:WEC) Public Service (Integrys Energy Group, Inc. (NYSE:TEG)’ subsidiary) customers, the project’s costs will be passed on to them at a rate increase of around $5 per month for the average residential user.
Is Exelon responsible?
Exelon Corporation (NYSE:EXC) released its “2012 Corporate Sustainability Report” last week, highlighting the corporation’s recent environmental efforts. A report like this isn’t just for socially responsible investors – it can also provide perspective on a company’s current progressiveness, as well as future prospects.
As the first report since its March 2012 merger with Constellation Energy, this publication holds new meaning for longtime energy investors. Safety and reliability seem to be key themes throughout, with record low outages and record high safety standards throughout the company. Exelon Corporation (NYSE:EXC) also gave a nod to its environmental developments, adding on 404 MW of wind and 31 MW of solar.
Stay current on electricity
The world of utilities is changing fast, and dividend stocks aren’t the stable stalwarts they once were. Be sure to check back weekly for the latest on your portfolio’s moves, and you’ll be well on your way to electrifying earnings.
The article This Week in Utilities: Surprise Dividends and Coal Conversions originally appeared on Fool.com and is written by Justin Loiseau.
Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool recommends Dominion Resources, Exelon, and Wisconsin Energy.
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