Boston, MA 04/28/2014 (wallstreetpr) – Cleco Corporation (NYSE:CNL) is a $3 billion utility holding company. The board of directors of the company declared quality dividend increase of 10.3 percent over the previous dividend rate. Therefore, the company will observe dividend payment of $0.40 percent, up from $0.36 that was previously being paid. The latest dividend hike leads to $1.60 per share in annualized dividend. The new annualized dividend yield now reflects 3.15 percent, above of the industry yield of 2.11 percent.
A steady dividend and hikes on the same reflect the strengthening financial position at Cleco. Moreover, the dividend hike reflects increasing shareholder orientation at the company. Talk about healthy financial position and Cleco closed 2013 with operating cash flow of about $342 million, suggesting an increase of almost 30 percent over the level of operating cash flow in 2012.
Having noted earnings per share of $2.53 in 2013, up 2.8 percent from 2012, the company expects to continue improving bottom line. The 2013 strong figures were supported by the server winter that created favorable impact. Also, wholesale and industrial sales in the year were up, leading to higher revenue and bottom-line. Coming to realize higher bottom line was supported by austerity measures that the company continues to observe.
Performance outlook
Cleco Corporation (NYSE:CNL) expects 2014 to witness significant bottom-line improvement. In joining of Midcontinent Independent System Operator Inc (MISO), a multiregional transmission entity, Cleco expects to gain in transmission opportunities and more wholesale revenue. Moreover, the new efficiency created by MISO will help Cleco to achieve economic and reliable power delivery to customers.
Analysts believe that the continued investment on growth projects as well as efficiency to generate adequate cash that can support consistent cash distribution to the shareholders.
In conclusion
Cleco Corporation (NYSE:CNL) expects to expand its revenue opportunities, curb costs and expenses to ensure that shareholders have something to show for their investment in the company. Therefore, investor-orientation that is fast taking roots in the company is good for income investors.
