ALBUQUERQUE - PNM Resources (NYSE: PNM), an energy holding company, announced today that its Board of Directors has declared a regular quarterly dividend of $0.3875 per share on the company's common stock. The dividend is scheduled to be paid on August 9, 2024, to shareholders who are on record as of the close of business on July 26, 2024.
PNM Resources, headquartered in Albuquerque, New Mexico, reported consolidated operating revenues of $1.9 billion in 2023. The company operates through its regulated utilities, PNM and TNMP, supplying electricity to over 800,000 homes and businesses across New Mexico and Texas.
PNM Resources has a generation capacity of 3.1 gigawatts from a combination of generation and purchased power. The company has also set a goal to reach 100% emissions-free generation by the year 2040.
The declaration of the dividend follows the company's objective to deliver shareholder value while maintaining its commitment to sustainable energy practices. Dividends are a way for companies to distribute a portion of their earnings back to shareholders, and PNM Resources has a history of providing these on a quarterly basis.
The dividend announcement is based on a press release statement from PNM Resources and is a common practice for publicly traded companies to keep their shareholders informed about financial decisions that impact them directly. This dividend payment is in line with previous quarters and reflects the company's steady financial performance.
Investors and shareholders of PNM Resources can expect the dividend to be disbursed in early August, as per the company's announced schedule. The dividend yield and the payout ratio are important indicators for investors when assessing the value and stability of their investment in the company.
PNM Resources continues to focus on providing reliable and sustainable energy solutions to its customers while striving to meet its long-term environmental goals. The company's progress towards these goals and its financial health are of interest to stakeholders and the energy sector at large.
In other recent news, PNM Resources has been making significant strides. The company exceeded first-quarter expectations for 2024, reporting ongoing earnings of $0.41 per share, and reaffirmed its full-year guidance, projecting earnings between $2.65 and $2.75 per share. Notably, the sale of NMRD in February significantly contributed to the quarter's success, generating $117 million in proceeds.
On the other hand, Evercore ISI initiated coverage on PNM Resources, issuing an In Line rating and setting a price target of $38.00. The firm acknowledged a mix of challenges and opportunities, including potential financing risks and jurisdictional risk in New Mexico, which they believe justifies a 10% discount multiple on their 2026 earnings per share estimate of $3.00.
Amid these developments, PNM Resources continues to focus on strategic initiatives like expanding transmission capacity in West Texas and enhancing solar resource integration. These recent developments underscore PNM Resources' commitment to balancing growth and risk management. Despite the challenges, the company's long-term earnings growth targets remain at 6% to 7%, demonstrating confidence in their strategic approach.
InvestingPro Insights
PNM Resources, with its commitment to sustainable energy and shareholder value, is navigating the financial landscape with a noteworthy blend of stability and growth potential. As per the latest data, PNM boasts a market capitalization of $3.53 billion, underscoring its significant presence in the utility sector. Investors may find the company's P/E ratio of 42.82 a point of interest, particularly when considering the industry's average and the company's earnings outlook.
Notably, PNM has demonstrated a consistent approach to shareholder returns, having raised its dividend for 12 consecutive years. This consistent increase is mirrored by the company's solid dividend yield of 4.02%, which is compelling compared to the lower yields found in the broader market. Moreover, the company's dividend growth over the last twelve months stands at 5.44%, reflecting a healthy balance between rewarding shareholders and maintaining financial flexibility.
Analysts have taken a positive stance on PNM's earnings, with some revising their earnings projections upwards for the upcoming period. This optimism is supported by the expectation of net income growth this year, signaling potential for continued financial strength.
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