CenterPoint Energy, Inc. (NYSE: NYSE:CNP) announced an increase in its regular quarterly cash dividend on Thursday. The Texas-based energy delivery company's Board of Directors declared a dividend of $0.2000 per share, payable on December 14, 2023, to shareholders of record at the close of business on November 16, 2023. This represents a $0.01 increase over the prior quarter's dividend.
The raised dividend aligns with an annual dividend of $0.77 for 2023, marking a $0.07 increase compared to dividends paid in 2022. This move underscores CenterPoint Energy's commitment to delivering value to its shareholders amid an evolving energy market landscape. According to InvestingPro, the company has maintained dividend payments for 53 consecutive years, which is a testament to its financial stability and commitment to shareholder value.
CenterPoint Energy is the sole investor-owned electric and natural gas utility based in Texas. It boasts electric transmission and distribution, power generation, and natural gas distribution operations that serve over seven million metered customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas. As of June 30, 2023, the company had approximately $38 billion in assets and employed around 9,000 individuals. Building on the legacy of its predecessor companies, CenterPoint Energy has been in operation for over 150 years.
InvestingPro data reveals that CenterPoint Energy operates with a significant market capitalization of $16,850 million and a P/E ratio of 23.05, indicating a robust financial position. Despite the company's substantial debt burden, strong earnings allow management to continue dividend payments. In fact, 4 analysts have revised their earnings upwards for the upcoming period, hinting at a positive outlook for the company.
The company's revenue growth has been slowing down recently, with a quarterly decline of -3.55%. However, the company has managed to maintain a gross profit margin of 38.86%, reflecting its efficiency in operations. The company's stock is currently trading near its 52-week low, and the RSI suggests that it is in oversold territory - potential indicators for investors looking for opportunities.
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