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Entergy Corporation's Board Approves 6.2% Hike in Dividend
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Entergy Corporation (ETR - Free Report) announced that its board of directors has approved a 6.2% increase in the quarterly dividend rate. The revised quarterly dividend will be $1.20 per share, payable on Dec. 2, 2024, to shareholders of record at the close of the business on Nov. 13, 2024. Since 1988, Entergy has consistently paid cash dividends to shareholders on its common shares.
ETR’s new annualized dividend rate is $4.80. The company’s current dividend yield is 3.52%, based on its share price worth $136.32 as of Oct. 28, 2024, which is better than the Zacks S&P 500 composite’s 1.23%.
Can Entergy Sustain Dividend Hikes?
Entergy boasts a systematic capital investment strategy with the goal of modernizing, decarbonizing and diversifying its portfolio, as well as potentially expanding its generation capacity. To this end, the company intends to invest $19.76 billion between 2024 and 2026 to improve distribution and transmission and boost renewable expansion. This three-year capital plan includes $10.63 billion in investments in transmission and distribution projects. These expenditures will assist the company in boosting its grid resilience and improving customer service, which should increase its revenue generation prospects. This will enable ETR to fund its future dividend hikes.
To increase the resilience of its transmission and distribution networks and enhance customer service, Entergy has also been making large investments in grid hardening. The first phase of Entergy Louisiana's resilience and grid-hardening plan was authorized by the Louisiana Public Service Commission in April 2024. Over a five-year period, 2,100 projects totaling $1.9 billion in funding are part of the strategy. Such investments should boost ETR’s operational efficiencies and bolster profitability, which can be used by the company to fund its shareholder-friendly initiatives in the future.
Other Utility Companies’ Recent Dividend Hikes
Utilities, due to their domestic focus and rate-regulated operations, generate a stable income, which allows them to increase shareholder value through regular dividend payments and buybacks. A few utilities among others have been mentioned below, who have decided to share more profits with their shareholders through dividend hikes.
On Sept. 20, 2024, IDACORP, Inc. (IDA - Free Report) announced that its board of directors approved a 3.6% hike in its quarterly dividend to 86 cents per share.
IDACORP boasts a long-term (three to five years) earnings growth rate of 5.5%. The Zacks Consensus Estimate for IDA’s 2024 sales implies an improvement of 4% from the previous year’s level.
On Sept. 11, 2024, New Jersey Resources (NJR - Free Report) announced that its board of directors approved a 7.1% hike in its quarterly dividend to 45 cents per share.
The Zacks Consensus Estimate for NJR’s fiscal fourth-quarter 2024 sales implies an improvement of 22.8% from the prior-year quarter figure. The Zacks Consensus Estimate for NJR’s fiscal 2024 earnings suggests an increase of 10.1% from the prior-year quarter figure.
On June 13, 2024, National Fuel Gas Company (NFG - Free Report) announced that its board of directors approved a 4% hike in its quarterly dividend to 51.5 cents per share.
The Zacks Consensus Estimate for NFG’s fiscal fourth-quarter 2024 sales implies an improvement of 30.8% from the prior-year quarter figure. The Zacks Consensus Estimate for NFG’s fiscal fourth-quarter 2024 earnings suggests a rise of 6.4% from the prior-year quarter figure.
ETR Stock Price Movement
In the past six months, ETR shares have rallied 27.2% compared with the industry’s growth of 13.6%.
Image: Bigstock
Entergy Corporation's Board Approves 6.2% Hike in Dividend
Entergy Corporation (ETR - Free Report) announced that its board of directors has approved a 6.2% increase in the quarterly dividend rate. The revised quarterly dividend will be $1.20 per share, payable on Dec. 2, 2024, to shareholders of record at the close of the business on Nov. 13, 2024. Since 1988, Entergy has consistently paid cash dividends to shareholders on its common shares.
ETR’s new annualized dividend rate is $4.80. The company’s current dividend yield is 3.52%, based on its share price worth $136.32 as of Oct. 28, 2024, which is better than the Zacks S&P 500 composite’s 1.23%.
Can Entergy Sustain Dividend Hikes?
Entergy boasts a systematic capital investment strategy with the goal of modernizing, decarbonizing and diversifying its portfolio, as well as potentially expanding its generation capacity. To this end, the company intends to invest $19.76 billion between 2024 and 2026 to improve distribution and transmission and boost renewable expansion. This three-year capital plan includes $10.63 billion in investments in transmission and distribution projects. These expenditures will assist the company in boosting its grid resilience and improving customer service, which should increase its revenue generation prospects. This will enable ETR to fund its future dividend hikes.
To increase the resilience of its transmission and distribution networks and enhance customer service, Entergy has also been making large investments in grid hardening. The first phase of Entergy Louisiana's resilience and grid-hardening plan was authorized by the Louisiana Public Service Commission in April 2024. Over a five-year period, 2,100 projects totaling $1.9 billion in funding are part of the strategy. Such investments should boost ETR’s operational efficiencies and bolster profitability, which can be used by the company to fund its shareholder-friendly initiatives in the future.
Other Utility Companies’ Recent Dividend Hikes
Utilities, due to their domestic focus and rate-regulated operations, generate a stable income, which allows them to increase shareholder value through regular dividend payments and buybacks. A few utilities among others have been mentioned below, who have decided to share more profits with their shareholders through dividend hikes.
On Sept. 20, 2024, IDACORP, Inc. (IDA - Free Report) announced that its board of directors approved a 3.6% hike in its quarterly dividend to 86 cents per share.
IDACORP boasts a long-term (three to five years) earnings growth rate of 5.5%. The Zacks Consensus Estimate for IDA’s 2024 sales implies an improvement of 4% from the previous year’s level.
On Sept. 11, 2024, New Jersey Resources (NJR - Free Report) announced that its board of directors approved a 7.1% hike in its quarterly dividend to 45 cents per share.
The Zacks Consensus Estimate for NJR’s fiscal fourth-quarter 2024 sales implies an improvement of 22.8% from the prior-year quarter figure. The Zacks Consensus Estimate for NJR’s fiscal 2024 earnings suggests an increase of 10.1% from the prior-year quarter figure.
On June 13, 2024, National Fuel Gas Company (NFG - Free Report) announced that its board of directors approved a 4% hike in its quarterly dividend to 51.5 cents per share.
The Zacks Consensus Estimate for NFG’s fiscal fourth-quarter 2024 sales implies an improvement of 30.8% from the prior-year quarter figure. The Zacks Consensus Estimate for NFG’s fiscal fourth-quarter 2024 earnings suggests a rise of 6.4% from the prior-year quarter figure.
ETR Stock Price Movement
In the past six months, ETR shares have rallied 27.2% compared with the industry’s growth of 13.6%.
Image Source: Zacks Investment Research
ETR’s Zacks Rank
Entergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.