NEW YORK (
shares slumped in early trading Wednesday even after the power company announced a 2% increase to its quarterly dividend.
said late Tuesday it has increased its quarterly cash dividend to 24.5 cents, an increase of a half cent over the previous level. The dividend is payable on Sept. 16 to shareholders of record at the close of business Aug. 13. The increased dividend represents a yield of 6.1%, up from its previous dividend yield of 5.94%.
"The dividend increase announced today is consistent with our previously stated objective to continue growing the dividend but at a slower rate than the long-term growth in our adjusted-diluted earnings per share," Duke Energy Chairman and CEO James Rogers said in a statement.
Despite the increased dividend, shares of Duke Energy were down 0.5% to $16.24.
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said it had an adjusted first-quarter profit of 36 cents a share, above the Thomson Reuters average estimate for earnings of 32 cents a share.
On the other hand,
cut its second-quarter dividend to $1.10 per share, down from its first-quarter dividend of $1.20 per share. Hatteras CEO Michael Hough acknowledged the lower dividend, saying that the "quarterly dividend level is appropriate given our outlook for the remainder of 2010."
Hough added that the lower dividend reflects the expected impact of the one-time
( FNM) and
( FRE) buyback program and the timing of the reinvestment of the proceeds.
Shares of Hatteras, which will pay the dividend on July 23 to stockholders of record on July 2, were down 1.3% to $29.05.
-- Written by Robert Holmes in Boston
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