(San Francisco) – PG&E Corporation (NYSE:PCG)
has approved an increase in its target common stock
dividend to $1.32 per share on an annual basis, or
$0.33 per share on a quarterly basis, compared with
the current quarterly dividend of $0.30 per share.
The new level will be reflected when the company declares
its fourth quarter dividend in December of this year
to be paid in January.
“In keeping with our policy, this adjustment
enables us to maintain a dividend that is comparable
with similar utilities and sustainable in the future,
while also allowing for adequate financial flexibility
to make needed infrastructure and other capital investments
in our core utility business,” said Peter A.
Darbee, PG&E Corporation President and Chief Executive
The Corporation has announced previously that it plans
to make utility capital investments of as much as $2.5
billion per year in 2007 through 2009 to improve its
energy infrastructure in California and meet the needs
of customers. Accordingly, in the near term, dividends
are expected to remain in the lower end of the company’s
target payout range of 50 percent to 70 percent of
earnings per share from operations, in order to ensure
that equity funding is readily available to support
these investment needs.