RICHMOND, Va., Feb. 9, 2015 /PRNewswire/ -- The board of directors of Dominion (NYSE: D) has declared a quarterly dividend of 64.75 cents per share, which corresponds to an annual dividend rate of $2.59 per share. The new dividend rate would signify an 8 percent increase from the 2014 dividend rate of $2.40. The expected 2015 dividend rate increase would mark the 12th consecutive year in which the annual dividend rate rose from the previous year.
The board also set a new goal to achieve a 70-75 percent dividend payout ratio in 2015 through the end of the decade. The new policy replaces one established in December 2012 to achieve a 65-70 percent payout ratio.
Thomas F. Farrell II, chairman, president and chief executive officer, said:
"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."
Dividends are payable on March 20, 2015, to shareholders of record at the close of business Feb. 27, 2015.
This is the 348th consecutive dividend that Dominion or its predecessor company has paid holders of common stock. The company's last quarterly dividend was declared Oct. 15, 2014.
Subject to quarterly declaration by the board, the annual dividend rate will have increased nearly 88 percent since 2006, when Dominion announced a strategic repositioning that has included the sell-off of most of the company's commodity-sensitive businesses and has focused on regulated and long-term contracted energy infrastructure operations and customer demand-oriented growth.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 24,600 megawatts of generation, 12,400 miles of natural gas transmission, gathering and storage pipeline and 6,455 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 949 billion cubic feet of storage capacity and serves utility and retail energy customers in 12 states. For more information about Dominion, visit the company's website at www.dom.com.
Payment of dividends is subject to quarterly determination and declaration by the board of directors of specific record and payable dates.
This news release includes certain forward-looking information that is subject to various risks and uncertainties. Words such as "expect," "target," "would," "will," "anticipate," "believe," "estimate," "intend," "may," "plan," "predict," "project," "should" and similar terms and phrases are used to identify forward-looking statements. Our business is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond our ability to control or estimate precisely, such as the timing and execution of Dominion Midstream's growth strategy. We have identified in our SEC Reports on Forms 10-K and 10-Q, and will in the future identify, a number of factors that could cause actual results to differ from those in the forward-looking statements. We refer you to those discussions for further information. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made.