Public Service Company of New Mexico Declares Preferred Dividend

Rhea-AI Summary

PNM Resources, Inc. subsidiary, Public Service Company of New Mexico, declares a regular quarterly dividend of $1.145 per share on the 4.58 percent series of cumulative preferred stock. The dividend is payable on April 15, 2024, to shareholders of record as of March 29, 2024.

Insights

Financial Analyst

The declaration of a regular quarterly dividend on preferred stock by the Public Service Company of New Mexico indicates a stable financial position and a commitment to providing returns to shareholders. The dividend yield, calculated by annualizing the quarterly dividend and dividing by the stock's price, is a critical metric for income-focused investors. In this case, the $1.145 per share dividend on the 4.58 percent series suggests a reliable income stream, particularly attractive in a low-interest-rate environment.

Investors should note the impact of such dividends on the company's cash flow and whether the payout is sustainable given PNM Resources' earnings and payout ratio. Additionally, the fixed nature of preferred dividends offers a cushion against market volatility, making the stock potentially more appealing to risk-averse investors. However, it is essential to consider the opportunity cost, as investing in preferred shares might yield lower capital gains compared to common shares or other investment vehicles.

Energy Market Analyst

PNM Resources' strategic goal to achieve 100% emissions-free generation by 2040 is significant within the energy sector, reflecting the broader industry trend towards sustainable energy practices. This transition could potentially lead to long-term cost savings and operational efficiencies, as well as aligning with increasing regulatory pressures and consumer demand for clean energy.

From a market perspective, PNM's investment in a diverse mix of generation and purchased power resources, totaling 3.1 gigawatts of capacity, positions the company to manage the variability in energy demand and supply. Investors should monitor the company's progress towards its emissions-free goal and assess the associated capital expenditures, regulatory risks and potential impact on profitability.

ALBUQUERQUE, N.M., March 11, 2024 /PRNewswire/ -- The Board of Directors of Public Service Company of New Mexico, a subsidiary of PNM Resources (NYSE: PNM), declared the regular quarterly dividend of $1.145 per share on the 4.58 percent series of cumulative preferred stock. The preferred stock dividend is payable April 15, 2024, to shareholders of record at the close of business March 29, 2024.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in Albuquerque, N.M., with 2023 consolidated operating revenues of $1.9 billion. Through its regulated utilities, PNM and TNMP, PNM Resources provides electricity to more than 800,000 homes and businesses in New Mexico and Texas. PNM serves its customers with a diverse mix of generation and purchased power resources totaling 3.1 gigawatts of capacity, with a goal to achieve 100% emissions-free generation by 2040. For more information, visit the company's website at www.PNMResources.com. 

CONTACTS:

Analysts           
Lisa Goodman   
(505) 241-2160       

Media 
Raymond Sandoval   
(505) 241-2782

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SOURCE PNM Resources, Inc.

FAQ

What is the dividend amount declared by Public Service Company of New Mexico?

The regular quarterly dividend declared by Public Service Company of New Mexico is $1.145 per share on the 4.58 percent series of cumulative preferred stock.

When is the dividend payable to shareholders?

The dividend is payable on April 15, 2024, to shareholders of record at the close of business on March 29, 2024.

What is the goal of PNM Resources in terms of generation?

PNM Resources aims to achieve 100% emissions-free generation by 2040.