Dominion Announces Dividend Increase in
Fourth Quarter and Again Next Year
RICHMOND, Va. - Dominion (NYSE:D) announced today that it
will raise its fourth-quarter dividend payable Dec. 20, 2004, by 2 cents per
share, increasing its current quarterly rate of 64.5 cents per share to 66.5
cents per share. This will be Dominion’s first dividend increase in ten
years.
For dividends payable in 2005, the quarterly rate will rise
again from 66.5 cents per share to 67 cents per share for an annual rate in
2005 of $2.68 per share.
Under current financial projections, the company believes
that additional 8-cent annual increases in Dominion’s dividend rate are
appropriate.
At present, Dominion has been paying out quarterly dividends
of 64.5 cents per share, or an annual rate of $2.58 per share. Dominion or predecessor
companies have paid more than 300 consecutive dividends. Common stock dividends
are declared on a quarterly basis by the board of directors.
Thos. E. Capps, chairman and chief executive officer, said:
“The time is right to boost the dividend. We’ve
looked at our cash flow for the first six months of the year. It’s strong
and sustainable. We have also taken a conservative view of our cash outlook
for the balance of the year, like what we see and are comfortable with this
move. Barring unforeseen circumstances, we’re positioned to adopt a sustainable
increase, beginning in the fourth quarter of 2004, and continuing at a slightly
higher rate in 2005 and beyond.
“Our integrated platform of regulated and unregulated
energy and natural gas assets is performing to our expectations. Our key metrics
and indicators are heading in the right direction. Operating earnings guidance
is positive — in the neighborhood of 5 percent to 7 percent annual growth.
Our credit metrics are moving in a positive direction — our debt ratio
is improving, our interest coverage ratios are stronger. Now, we are delighted
to say that our dividend will be heading up.”
Dominion is one of the nation’s leading energy companies.
This release contains forward-looking statements including
our expectations for future dividends, 2004 and 2005 earnings and for future
annual growth rates that are subject to various risks and uncertainties and,
in the case of dividends, board approval. Discussion of factors that could cause
actual results to differ materially from management's projections, forecasts,
estimates and expectations may include factors that are beyond the company's
ability to control or estimate precisely, such as estimates of future market
conditions, estimates of proved and unproved reserves and the behavior of other
market participants. Other factors include, but are not limited to, weather
conditions, governmental regulations, economic conditions in the company's service
area, fluctuations in energy-related commodity prices, including changes in
the cost of fuel for our regulated electric business, risks related to operating
businesses in regulated industries that are becoming deregulated, the transfer
of control over electric transmission facilities to a regional transmission
organization, changes to rating agency requirements and ratings, changing financial
accounting standards, trading counter-party credit risks, risks related to energy
trading and marketing, and other uncertainties. Other risk factors are detailed
from time to time in Dominion’s most recent quarterly report on Form 10-Q
or annual report on Form 10-K filed with the Securities & Exchange Commission.
