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Company Profile: Richmond, Va.-based Dominion Resources is a producer and transporter of energy. It manages its daily operations through three operating segments: Dominion Virginia Power of DVP, Dominion Energy and Dominion Generation.
Dominion Resources raised its annual dividend by 7.7% to $1.97 per share, or 49.25 cents per share on a quarterly basis. It also set a new dividend payout ratio of 60% to 65%, up from a ratio of 55%, lifting the ratio of dividends to earnings it plans to pay going forward.
That brings Dominion's yield to around 4.6%.
Warmer weather and improvements at Dominion's Virginia Power business and generation unit recently helped the utility post stronger quarterly results. Third-quarter profits fell 3.2%, dragged by the effects of taxes, but adjusted for one-time items both revenue and earnings grew in the period.
Dominion also said its board elected a new director, Helen E. Dragas. The twelfth member of the board is a Virgina real estate executive.
On Dec. 29, Dominion Virginia Power announced plans for a five-year investment plan to bolster its energy production capacity.
CEO Paul D. Koonce said Dominion Virginia Power will invest $7.6 billion over the next five years for new power stations and other electric infrastructure as demand among its customers grows. The investments will also cover "reliability enhancements and new technology that will allow customers to save money on their energy bills," the company said.
"The trends remain clear that Virginia's economy continues a slow-but-steady recovery, the state's population is growing, and the demand for energy is moving right along with it," Koonce said. "We are committed to support that growth in the most cost-effective, reliable and responsible way."
The plans adds to a three-year effort announced last January for investments from 2010 through 2012 that would total $4 billion.
Koonce said that growth beyond that time period will necessitate adding additional energy to "to power the equivalent of 1.4 million new homes by 2020."