Wisconsin Energy (WEC) Plans 8.2% Dividend Hike; Reaffirms FY15 EPS Outlook

Wisconsin Energy (NYSE: WEC) announced that it is planning to raise the quarterly dividend to 49.50 cents a share on the company's common stock in the first quarter of 2016. This would represent an increase of 3.75 cents a share over the current quarterly rate.

The directors expect to declare the new dividend at their regularly scheduled meeting in January. The dividend – which would be equivalent to an annual rate of $1.98 a share – is expected to be payable March 1, 2016, to stockholders of record on Feb. 12, 2016.

"We will continue to target a dividend payout ratio of 65 to 70 percent of earnings, a policy in line with our peers across the utility industry," said Gale Klappa, chairman and chief executive. "The board's plan is consistent with that objective."

The company also reaffirmed that it projects adjusted, stand-alone earnings for Wisconsin Energy to be $2.72 a share for calendar year 2015. In 2016, earnings for the combined company are projected to grow by 6 to 8 percent – with earnings in a range of $2.88 to $2.94 a share.

*** The Street sees FY16 EPS of $2.92.

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