Analyzing Southern Company’s Yield ahead of Its Ex-Dividend Date
Southern Company’s ex-dividend date
Georgia-based Southern Company (SO) declared a fourth quarter dividend of $0.58 per share on October 16, 2017. It has an ex-dividend date of November 17, and the dividend will be paid on December 6, 2017.
The second-largest rate-regulated utility, Southern Company, is the highest-yielding utility. It is currently trading at a dividend yield of 4.5%, while the Utilities Select Sector SPDR ETF (XLU) offers a yield of 3.5%. Southern Company’s premium yield is also far higher than that of broader markets and Treasury yields.
Interested in D? Don't miss the next report.
Receive e-mail alerts for new research on D
In comparison, Duke Energy (DUK) is currently trading at a dividend yield of 4.1%, while Dominion Energy (D) yields around 3.8%. Southern Company has a better yield than the industry average from the last five years.
Though Southern Company’s dividend yield is better than many of its peers, SO significantly lags behind peers in terms of dividend growth. Southern Company’s per share dividends rose 3.4% compounded annually in the last five years. In comparison, broader utilities (VPU) (IDU) increased their per share dividend by 4.2% compounded annually in the same period.
Southern Company’s peer Duke Energy managed to raise its per share dividend by around 2.9%, while Dominion Energy (D) raised its per share dividend by 7.5% compounded annually in the last five years. Dominion Energy’s dividend growth was significantly higher than the industry average, which was facilitated by its above-average earnings growth.
In the next article, we’ll go into more depth about Southern Company’s dividends and what could impact them going forward.