Ameren (AEE) Rewards Shareholders With Dividend Hike Of 4%
Zacks Investment Research | Oct 15, 2017 09:01PM ET
Electric and gas utility provider, Ameren Corporation (NYSE:AEE) recently enticed investors by announcing an attractive hike of 4% in its fourth-quarter cash dividend. This hike increased its common stock dividend to 45.75 cents per share from the prior quarterly cash dividend of 44 cents.
The dividend hike has increased the company’s annualized equivalent dividend rate to $1.83 per share from the prior level of $1.76.
The common share dividend will be payable on Dec 29 to shareholders of record at the close of business on Dec 13.
Dividend Trends among Utilities
The utility sector is a fundamentally strong sector as demand for utility services is generally immune to fluctuations of the economic cycle especially as these companies provide basic services like electricity, gas and water, which can never go out of demand. This makes the stocks in this space as safe-heavens one and they enjoy a steady flow of revenues and cash flows.
As a result of steady flow of uninterrupted income in general, these stocks tend to generate consistent profits and reward shareholders with high dividends and Amerenis no exception. In this line, another utility operator, MGE Energy Inc. (NASDAQ:MGEE) rewarded its shareholders a dividend hike of 5% in the month of August. (Read More: Zacks Investment Research
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