SoCalGas Declares Preferred Dividends

Rhea-AI Summary

SoCalGas has announced regular quarterly dividends for its preferred series stock, with a payout of $0.375 per share. The dividends are payable on April 15, 2024, to shareholders of record on March 10, 2024.

Insights

Financial Analyst

The declaration of regular quarterly dividends by Southern California Gas Co. (SoCalGas) for its preferred series stock signifies a stable financial position and a commitment to rewarding its shareholders. The dividend yield, calculated by annualizing the quarterly dividend rate and dividing by the stock's price, can be a critical indicator for investors looking for regular income. The consistency in the dividend payout can also be seen as a reflection of the company's predictable cash flow and prudent financial management.

However, investors should also consider the company's payout ratio, which is the proportion of earnings paid out as dividends to shareholders. A payout ratio that is too high might not be sustainable in the long run, while a ratio that is too low might indicate that the company is retaining more earnings for growth or that it's undervalued. Comparing SoCalGas's payout ratio to the industry average could provide additional insights into the company's dividend policy's sustainability.

Market Research Analyst

From a market research perspective, the dividend announcement can have implications for investor sentiment and stock market performance. Dividends are often seen as a sign of corporate health and financial stability, which can bolster investor confidence. Moreover, for income-focused investors, such as retirees or those seeking steady cash flows, preferred stocks with regular dividends are particularly attractive.

It's also worth noting how this dividend declaration fits within the broader utility sector trends. Utilities are typically known for their high dividend yields and low volatility. If SoCalGas's dividend yield is competitive within the sector, it could attract more investors seeking defensive investments, especially in a volatile market environment. On the other hand, if the utility sector is facing headwinds due to regulatory changes or shifts in energy consumption patterns, it could impact the long-term attractiveness of these dividends.

Economist

Examining the broader economic context, the decision by SoCalGas to maintain its dividend payouts may be influenced by the prevailing interest rate environment. In a low-interest-rate environment, dividend-paying stocks become more attractive as they offer better returns compared to bonds. Conversely, if interest rates are rising, bonds might become more appealing and companies with high dividend yields might need to adjust to maintain their attractiveness to income-seeking investors.

Furthermore, the utility sector is often considered non-cyclical, meaning it is less sensitive to economic cycles because consumers need utilities regardless of the economic climate. This can make utility stocks like SoCalGas more resilient during economic downturns, potentially offering a safe haven for investors during periods of market turbulence.

LOS ANGELES, Jan. 24, 2024 /PRNewswire/ -- The board of directors of Southern California Gas Co. (SoCalGas) has declared regular quarterly dividends for the preferred series stock of the company as follows:            

SoCalGas:

Preferred Stock Preferred Stock, Series A

$0.375 per share $0.375 per share

 

The dividends are payable on April 15, 2024, to shareholders of record on March 10, 2024.

About SoCalGas

Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, and increasingly renewable gas service to over 21 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment. 

SoCalGas' mission is to build the cleanest, safest and most innovative energy infrastructure company in America. In support of that mission, SoCalGas aspires to achieve net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego. 

For more information visit socalgas.com/newsroom or connect with SoCalGas on X (@SoCalGas), Instagram (@SoCalGas) and Facebook. 

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SOURCE Southern California Gas Company

FAQ

What dividends has SoCalGas declared for its preferred series stock?

SoCalGas has declared regular quarterly dividends for its Preferred Stock, Series A, at a rate of $0.375 per share.

When are the dividends payable?

The dividends are payable on April 15, 2024.

When is the record date for shareholders to receive the dividends?

Shareholders of record on March 10, 2024, will receive the dividends.