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PPL’s Recent Dividend Increase, Yield, and More

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PPL: Ex-dividend date

PPL Corporation (PPL) declared a quarterly dividend of $0.41 per share on February 22. It has March 8 as its ex-dividend date, and the dividend is slated to be paid on April 2.

Considering the annualized dividends of 2018, PPL has increased its dividend per share by 4% compared to its dividends in 2017. PPL’s dividend growth seems to be close to the lower end of the industry’s average dividend growth of 4%–6%.

PPL 1

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Dividend growth

PPL’s dividend growth in the last few years was on the lower side compared to peers. Its dividend per share rose 1.8% compounded annually over the last five years. In comparison, the Utilities Select Sector SPDR (XLU) increased its dividend per share by around 4.0% compounded annually during the same period. Top utilities NextEra Energy (NEE) and Dominion Energy (D) raised their dividends per share 10% and 8%, respectively, compounded annually in the last five years.

Dividend yield

PPL Corporation is one of the top-yielding utilities among the S&P 500 Utilities Index. PPL is currently trading at a dividend yield of 5.6%, while broader utilities’ (XLU) average yield comes in around 3.5%. However, PPL’s superior yield is mainly because of its stock’s steep fall recently.

Southern Company (SO) is trading at a dividend yield of 5.2% while NextEra Energy (NEE) offers a yield of 2.6%. Duke Energy is trading at a dividend yield of 4.7%.

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