Another dividend increase by Southern Company.
On April 20th 2020 Southern Company (SO) announced a 3.23% increase in its quarterly. The dividend is raised from $0.62 to $0.64. This marks the 19th consecutive year that SO has raised the dividend on its common stock.
The dividend pay date is June 8, 2020 to shareholders of record on May 18, 2020 (ex dividend May 15, 2020).
President and CEO – Thomas A. Fanning said:” For more than 70 years, our overall shareholder value proposition has encompassed dividends and dividend growth. Today’s action by the board reinforces the strength and resilience of Southern Company’s exceptional energy businesses.”
SO have paid a dividend to its shareholders that is equal to or greater than the previous quarter every quarter dating back to 1948!!
The new dividend amount represents an annualized dividend amount of $2.56 per share, up from $2.48. The dividend yield on current price is 4.6%. And Southern Company’s Payout ratio is 55%.
My Vrijheid Fonds consist of 50 shares of Southern Company and with this 3.2% increase it will add €2.36 ($2.55) after taxes, to my projected annual dividend income. In 2020 SO will pay me €99 ($107) dividend after taxes.
Again a nice increase from Southern Company! Regardless of how large or small, I love all dividend increases. That is how we end up with more Dividends.
Why do I like SO, because regulated utilities mean higher predictability and lower investment risk. They are some of the most stable stocks for your investment bucks. If you like slow and steady stocks, regulated utilities usually fit that profile.
Do you currently hold any stock in Southern Company, did you buy some extra during the recent dip. And what do you think of this dividend increase? I like to hear from you!