PG&E Corporation (NYSE:PCG) has announced an extension to the contract of CEO Patricia K. Poppe, along with a rise in its quarterly dividend, according to a recent 8-K filing with the Securities and Exchange Commission.
On Friday, the company amended the offer letter of CEO Patricia K. Poppe, extending her tenure through January 4, 2031. The original terms of the offer, dated November 13, 2020, will remain effective, with Ms. Poppe's compensation continuing to be subject to annual performance evaluations, market reviews, and approval by the independent members of PG&E's Board of Directors.
In addition to the executive contract update, PG&E declared a fourth-quarter 2024 regular cash dividend of $0.025 per share on its common stock, marking an increase of $0.015 per share. The dividend is slated for payment on January 15, 2025, to shareholders of record as of December 31, 2024.
The company's management also provided dividend guidance, expressing intentions to recommend consistent dividend increases with a target payout ratio of around 20% of non-GAAP core earnings per share by 2028. This strategy aligns with PG&E's capital allocation balance between dividends and investments in the utility industry's growth needs.
Furthermore, PG&E Corporation reaffirmed its financial guidance, projecting a non-GAAP Core Earnings Per Share (EPS) for 2024 in the range of $1.34-$1.37. The company anticipates a 10% year-over-year growth at the midpoint for 2025, with non-GAAP Core EPS of $1.47-$1.51, and consistent growth of at least 9% annually through 2028.
The above news is based on an SEC filing.
In other recent news, Mizuho (NYSE:MFG) Securities has reaffirmed its Outperform rating for PG&E and increased the company's price target to $26.00. This follows PG&E's proposal for a new rate structure to the California Public Utilities Commission, aiming to expedite the connection process for transmission-level customers. PG&E also completed a $500 million sale of 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due in 2055, raising the total outstanding principal amount for this series to $1.5 billion.
Furthermore, PG&E has expanded its five-year capital plan by $1 billion, now totaling $63 billion through 2028. This includes plans to reduce $2 billion in corporate debt by 2026 and raise $3 billion in equity through an at-the-market program. The company also plans to invest an additional $5 billion in customer-driven projects.
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