FirstEnergy Corporation (NYSE:FE) Plans Quarterly Dividend of $0.47

Key Points

• FirstEnergy declared a quarterly dividend of $0.465 per share, payable December 1 to shareholders of record November 6. The annualized dividend is $1.86, representing a 4.3% yield.
• The dividend appears supported by earnings, with a current payout ratio of 68.9% and an expected future payout ratio of 63.1%; the company has raised its dividend for three consecutive years.
• FirstEnergy’s latest quarterly results matched analyst expectations at $0.50 EPS, while revenue of $3.68 billion exceeded the $3.51 billion consensus estimate. Institutional investors own approximately 89.4% of the stock.

FirstEnergy Corporation (NYSE:FE - Get Free Report) announced a quarterly dividend on Tuesday, September 29th. Shareholders of record on Friday, November 6th will be paid a dividend of $0.4650 per share by the utilities provider on Tuesday, December 1st. This represents a $1.86 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Friday, November 6th.

FirstEnergy has raised its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 3 years. FirstEnergy has a payout ratio of 68.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect FirstEnergy to earn $2.95 per share next year, which means the company should continue to be able to cover its $1.86 annual dividend with an expected future payout ratio of 63.1%.

FirstEnergy Price Performance

NYSE FE opened at $43.59 on Wednesday. The stock has a 50-day moving average of $46.66 and a 200 day moving average of $47.57. FirstEnergy has a one year low of $42.67 and a one year high of $52.34. The company has a market capitalization of $25.22 billion, a price-to-earnings ratio of 23.19, a PEG ratio of 2.49 and a beta of 0.45. The company has a debt-to-equity ratio of 1.88, a quick ratio of 0.45 and a current ratio of 0.54.

FirstEnergy (NYSE:FE - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The utilities provider reported $0.50 earnings per share for the quarter, meeting the consensus estimate of $0.50. The firm had revenue of $3.68 billion during the quarter, compared to analysts' expectations of $3.51 billion. FirstEnergy had a net margin of 6.86% and a return on equity of 10.51%. During the same period in the previous year, the company earned $0.52 earnings per share. On average, sell-side analysts forecast that FirstEnergy will post 2.74 EPS for the current year.

Hedge Funds Weigh In On FirstEnergy

A number of hedge funds have recently added to or reduced their stakes in the stock. Axiom Investment Management LLC bought a new position in FirstEnergy during the 1st quarter worth about $26,000. Western Wealth Management LLC acquired a new position in shares of FirstEnergy in the first quarter valued at about $37,000. Highland Investment Advisors LLC purchased a new position in shares of FirstEnergy during the second quarter worth $35,000. Pinnacle Bancorp Inc. raised its position in FirstEnergy by 44.4% during the first quarter. Pinnacle Bancorp Inc. now owns 754 shares of the utilities provider's stock valued at $38,000 after acquiring an additional 232 shares in the last quarter. Finally, Ascentis Independent Advisors purchased a new stake in FirstEnergy during the first quarter worth $46,000. 89.41% of the stock is currently owned by institutional investors.

About FirstEnergy

FirstEnergy Corp. is an electric utility holding company focused primarily on regulated electricity transmission and distribution. Through its operating companies, the company delivers electricity to residential, commercial and industrial customers and maintains the infrastructure needed to support reliable service.

FirstEnergy's utility subsidiaries include Ohio Edison, The Illuminating Company and Toledo Edison in Ohio; Met-Ed, Penelec, Penn Power and West Penn Power in Pennsylvania; Jersey Central Power & Light in New Jersey; and Mon Power and Potomac Edison in West Virginia and Maryland.

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