Dominion increases annual dividend rate 6.6% to $2.25 per share The board of directors of Dominion set a new goal to achieve a 65%-70% dividend payout ratio. The new policy replaces one established in December 2010 to achieve a 60%-65% payout ratio. The board also set a 2013 dividend rate of $2.25 per share of common stock, up from $2.11 per share in 2012, or a 6.6% increase. Subject to board declaration in January, the first quarterly dividend of 56.25c per share will be payable in March 2013.
Dominion resumed with a Buy from Neutral at Citigroup Citigroup upgraded Dominion Resources to Buy after resuming coverage of the stock and raised its price target for shares to $85 from $74. Citi also added the name to its Focus List. The firm expects drop downs to drive strong cash flows for Dominion.