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Pinnacle West raises dividend ahead of Q3 results

Published 23/10/2024, 22:10
PNW
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PHOENIX - Pinnacle West Capital Corporation (NYSE: NYSE:PNW) announced an increase in its quarterly dividend, alongside scheduling its third-quarter financial results release and conference call. The company's board of directors approved a 1.7% rise in the dividend, which translates to an additional 6 cents per common share annually, setting the new indicated annual dividend at $3.58 per share. Shareholders of record by November 4, 2024, will be eligible for the dividend payable on December 2, 2024.

The energy holding company, which boasts consolidated assets exceeding $26 billion, will unveil its financial performance for the third quarter before the markets open on Wednesday, November 6, 2024. Following the earnings release, Pinnacle West's management will conduct a live webcast and conference call at 11 a.m. ET to discuss the results and recent developments.

Interested parties can join the conference call by dialing the provided numbers and using the access code 952382. The webcast will be accessible via the company's website, where a replay will also be available for 30 days post-event. For those unable to attend the live event, a telephone replay will be accessible until 11:59 p.m. ET on November 13, 2024.

Pinnacle West, through its primary subsidiary Arizona Public Service, delivers retail electricity services to approximately 1.4 million homes and businesses in Arizona. The company's announcement is based on a press release statement and is intended to inform shareholders and the market of the upcoming financial disclosure and dividend distribution.

In other recent news, Arizona Public Service Company (APS) has been awarded two grants totaling $70 million from the U.S. Department of Energy's Grid Deployment Office. The grants will fund projects enhancing grid resilience and wildfire safety, as well as the construction of new smart grid technology projects. Meanwhile, Pinnacle West Capital Corporation has reported growth in its 2024 second quarter earnings, driven by an expanding customer base and favorable weather conditions, although it forecasts a lower range of sales growth for the year.

Mizuho maintains a positive outlook on Pinnacle West, reaffirming an Outperform rating. This optimism is based on meetings with Pinnacle West's CEO Jeffrey Guldner and CFO Andrew Cooper, who expressed confidence about the company's regulatory environment and the potential for a favorable decision on the regulatory lag docket by the end of 2024. The company is also making strides in regulatory proceedings, with decisions on a rate case filing pending further developments.

These recent developments highlight the progress both APS and Pinnacle West are making in their respective fields. APS's grants will support large-scale engineering projects enhancing grid safety and resilience, while Pinnacle West's earnings growth and positive analyst outlook underscore its strong financial performance.

InvestingPro Insights

Pinnacle West Capital Corporation's recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 3.99% and has maintained dividend payments for 32 consecutive years. This consistency is further underscored by an InvestingPro Tip highlighting that Pinnacle West has raised its dividend for 12 consecutive years, demonstrating a commitment to returning value to shareholders.

The company's financial health appears robust, with a market capitalization of $10.14 billion and a price-to-earnings ratio of 16.32. This valuation metric is particularly interesting when considered alongside another InvestingPro Tip, which notes that Pinnacle West is trading at a low P/E ratio relative to its near-term earnings growth. This could suggest potential value for investors looking at the utility sector.

Pinnacle West's stock performance has been noteworthy, with a year-to-date price total return of 27% as of the latest data. The stock is currently trading near its 52-week high, which is another point highlighted by InvestingPro Tips.

For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Pinnacle West Capital Corporation. These tips could provide valuable context for understanding the company's position in the utility sector and its potential for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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