First Dividend as Newly Public Company Comprised of 13 Cents for the Post IPO Portion of Fourth Quarter 2015 Plus 21 Cents for the Full First Quarter of 2016;
March 31, 2016 Payment Date to Follow March 17, 2016 Record Date;
Board also Approves Creation of Dividend Reinvestment Plan
TORONTO, Feb. 12, 2016 /CNW/ - Hydro One Limited (TSX: H), the largest electrical transmission and distribution utility in Ontario, today announced its that its Board of Directors declared a cash dividend to shareholders totaling 34 cents per share on each of its outstanding common shares.
This is the first dividend declared by Hydro One Limited following the completion of its initial public offering on November 5, 2015. The 34 cents per share dividend is comprised of 13 cents for the post IPO fourth quarter period of November 5 through December 31 2015, plus 21 cents for the full first quarter ending March 31, 2016.
The dividend declared today will be paid on March 31, 2016 to shareholders of record on March 17, 2016. Such quarterly dividends, unless and until changed, are only payable as and when declared by Hydro One Limited's Board of Directors and there is no entitlement to any dividend prior thereto. Unless indicated otherwise, all dividends paid by Hydro One Limited are designated as "eligible" dividends for the purpose of the Income Tax Act (Canada) and any similar provincial legislation.
Hydro One Limited's Board of Directors also approved and the Company is implementing a Dividend Reinvestment Plan ("DRIP") to be in place prior to the record date for the dividend declared above. The DRIP will enable eligible shareholders to have their regular quarterly cash dividends automatically reinvested in additional Hydro One Limited common shares. No commissions, service charges or brokerage fees will be payable by participants in connection with additional shares acquired under the DRIP. Computershare Trust Company of Canada has been appointed as the plan agent for the proposed DRIP. The plan agent will acquire common shares for the DRIP in the open market following the payment of each dividend, and the price for each common share acquired will be the average of the actual price paid by the plan agent in acquiring the shares. No common shares will be issued from treasury in connection with the DRIP. More information about the DRIP, including the plan document and registration forms, are available at www.hydroone.com/DRIP.
About the Company:
Hydro One Limited is Ontario's largest electricity transmission and distribution company headquartered in Toronto, Ontario with approximately $24.3 billion in assets and 2015 revenues of over $6.5 billion. The company delivers electricity safely and reliably to over 1.3 million customers across the province of Ontario, and to large industrial customers and municipal utilities. Hydro One owns and operates Ontario's approximately 29,000 km high-voltage transmission network and an approximately 123,000 circuit km primary low-voltage distribution network. Hydro One Limited common shares are listed on the Toronto Stock Exchange (TSX: H). For more information about Hydro One, visit www.HydroOne.com
SOURCE Hydro One Limited