FirstEnergy Raises Shareholders Values, Increases Dividend 4.7%

FirstEnergy Corp. FE announced that its board of directors approved a 4.7% increase in the quarterly dividend rate. The revised quarterly dividend will be 44.50 cents, payable June 1, 2025, to its shareholders of record at the close of business on March 9.The company’s new annualized dividend rate is $1.78 and the current dividend yield is 4.49%, which is better than the S&P 500 composite’s average of 1.57%.Can FirstEnergy Sustain Dividend Hikes?FirstEnergy’s efforts to expand its regulated generation mix provided stability to its earnings trajectory. In the last few years, FE witnessed a successful broadening of regulated operations and a complete transition to become a fully-regulated utility company. FirstEnergy is gaining from improving economic conditions and rising demand from commercial and industrial groups compared with last year.The company’s strategic investment will help it serve six million customers more efficiently. FirstEnergy’s ‘Energize365’ is a multi-year grid evolution platform, focused on enhancing customer experience while maintaining strong affordability position with rates at or below its in-state peers. With planned investments of $28 billion between 2025 and 2029, the company will install advanced equipment and technologies that will strengthen and modernize its transmission and distribution infrastructure.Strengthening the transmission and renewable generation assets will allow the company to transmit electricity even during adverse weather conditions and provide emission-free electricity to customers. In February 2025, FE announced that JCP&L was upgrading nearly four miles of existing infrastructure in two separate areas with thicker, stronger poles and overhead wires that can safely carry more electricity and provide more resiliency in storms. Installing nearly 0.25 miles of underground cables connecting the two upgrade zones will provide additional flexibility and protection.These above factors will enable the company to perform steadily and generate additional funds for payment and increase dividends.Utilities Continue to Reward ShareholdersDomestic-focused, rate-regulated utilities are stable performers, which allows them to reward shareholders through dividend hikes and share buybacks. Other utilities, such as Essential Utilities WTRG, PPL Corporation PPL and Atmos Energy Corporation ATO, have raised dividend rates during 2025.The current dividend yields of WTRG, PPL and Atmos Energy are 3.33%, 3.12% and 2.31%, respectively.Price MovementIn the past three months, FE shares have returned 0.3% compared with its industry’s 5% growth. Image Source: Zacks Investment Research FE’s Zacks RankFirstEnergy currently has a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PPL Corporation (PPL): Free Stock Analysis Report FirstEnergy Corporation (FE): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report Essential Utilities Inc. (WTRG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks