What’s behind NRG Energy’s Diminishing Dividends?



NRG Energy’s dividends

NRG Energy (NRG) is the only utility under our consideration that pays dividends. Dynegy (DYN) and Calpine (CPN) don’t pay dividends.

In 2Q16, NRG cut its annual dividend 80% from $0.58 per share to $0.12 per share. NRG is planning to reduce its debt by $1.1 billion through dividend cuts and various cost-cutting initiatives.

NRG dvd

NRG’s dividend yield stands at 0.9% while utilities at large yield 3.5%. Industry giants Southern Company (SO) and Duke Energy yield nearly 4.5%.

Read Why Do Utilities Pay High Dividends? for more information.

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