Dominion Resources Raises Dividend By 8%

Dominion Resources Inc. said Monday it is raising its dividend by 8% and amending its policy to allow it achieve a 70% to 75% dividend payout ratio in 2015 through the end of the current decade. The new policy replaces one set in Dec. 2012 to achieve a 65% to 70% payout ratio. "The new targeted dividend payout ratio and rate reflect Dominion's confidence in achieving 6-7 percent operating earnings per share growth through 2020 and in the expected value of Dominion Midstream's cash flows to Dominion shareholders," Chief Executive Thomas Farrell said in a statement. The company will now pay a quarterly dividend of 64.75 cents a share, equal to an annual divided rate of $2.59 a share. The next dividend will be payable on March 20 to shareholders of record as of Feb. 27. Shares were up 0.3% and are up 2.7% in the last three months, while the S&P 500 has gained 1.1%.