LONDON, UK / ACCESSWIRE / February 05, 2018 / Active-Investors has a free review on FirstEnergy Corp. (NYSE: FE) following the Company's announcement that it will begin trading ex-dividend on February 06, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on February 05, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on FE:
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Dividend Declared
On January 16, 2018, FirstEnergy's Board of Directors declared an unchanged quarterly dividend of $0.36 per share of outstanding common stock. The dividend will be payable March 01, 2018, to shareholders of record at the close of business on February 07, 2018.
FirstEnergy's indicated dividend represents a yield of 4.37%, which is substantially higher than the average dividend yield of 2.36% for the Utilities sector.
Dividend Insight
FirstEnergy has a dividend payout ratio of 47.1%, which indicates that the Company spends approximately $0.47 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, FirstEnergy is forecasted to report earnings of $2.51 for the next year, which is substantially above the Company's annualized dividend of $1.44 per share.
As of September 30, 2017, FirstEnergy had cash and cash equivalents worth $399 million compared to $199 million as on December 31, 2016. For the nine months ended September 30, 2017, the Company's net cash provided by operating activities came in at $2.76 billion compared to $2.59 billion for the year ago same period. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for FirstEnergy
On January 22, 2018, FirstEnergy announced a $2.5 billion investment in the Company, including $1.62 billion in mandatory convertible preferred equity, with an initial conversion price of $27.42 per share and $850 million of common equity issued at $28.22 per share. The investment was made by investors, including affiliates of Elliott Management Corporation (EMC), Bluescape, GIC, and Zimmer Partners, L.P.
As per the announcement, the preferred shares will receive the same dividend paid on FirstEnergy's common stock on an as-converted basis and are non-voting bar in exceptional circumstances. The new preferred shares contain an optional conversion for holders beginning in six months, and will mandatorily convert in 18 months, subject to a limited exception. EMC, Bluescape, and GIC are preferred equity investors. Zimmer is the common equity investor.
This equity investment allows FirstEnergy to significantly strengthen its balance sheet and supports the Company's transition to a fully regulated entity. By deleveraging FirstEnergy, this investment will also enable the Company to enhance its investment grade credit metrics and eliminate the need to issue incremental equity though at least year-end 2020.
About FirstEnergy Corp.
FirstEnergy, through its subsidiaries, generates, transmits, and distributes electricity in the United States. The Company owns and operates coal-fired, nuclear, hydroelectric, oil and natural gas, wind, and solar power generating facilities. FirstEnergy serves approximately six million customers within 65,000 square miles in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy was founded in 1996 and is headquartered in Akron, Ohio.
Stock Performance Snapshot
February 02, 2018 - At Friday's closing bell, FirstEnergy's stock declined 1.56%, ending the trading session at $32.11.
Volume traded for the day: 7.20 million shares, which was above the 3-month average volume of 6.18 million shares.
Stock performance in the last month - up 5.69%; previous six-month period - up 0.16%; past twelve-month period - up 7.21%; and year-to-date - up 4.87%
After last Friday's close, FirstEnergy's market cap was at $14.51 billion.
The stock has a dividend yield of 4.48%.
The stock is part of the Utilities sector, categorized under the Electric Utilities industry.
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