Archive for Monday, August 29, 2011

Westar to pay quarterly dividend of 32 cents per share

August 29, 2011


— The board of directors of Kansas-based utility Westar Energy Inc. has declared a quarterly dividend of 32 cents per share on its common stock.

The dividend is the same as the two previous quarterly dividends declared this year by Westar's board.

But it is 3 percent higher than the quarterly dividends of 31 cents a share declared last year. The quarterly dividends bottomed out at 19 cents per share in 2004 but have been increasing since.

Westar has about 687,000 customers and is the largest electric utility in Kansas.

The latest dividend is payable on Oct. 3 to stockholders of record as of Sept. 9.


Number_1_Grandma 4 years, 3 months ago

And yet they keep asking for rate hikes. Just who are they responsible too, shareholders or rate payers?

imastinker 4 years, 3 months ago

Are you saying they should be more responsible to customers than shareholders?

Their quarterly dividend is around 1.5%, so returns are around 6% annually, plus any appreciation in stock value. Returns on capital gains seems to be pretty minor. It looks like the dividend through the 90's was twice what it is now. I wonder why that is?

usnsnp 4 years, 3 months ago

They are responsible to both groups. But as long as they have a guarenteed return on their investment the consumer will get it in the neck. Even if you conserve energy all the company has to say we are not making enough profit, we have to raise rates. With the system we have here in Kansas there is no incentive for the power company to be efficient.

imastinker 4 years, 3 months ago

Efficiency and profit are two separate items. I agree with your last statement, but 6% annual returns is not excessive profits.

jafs 4 years, 3 months ago

That's actually an interesting idea.

But I wonder about the conflict of interest, given that the state regulates Westar.

imastinker 4 years, 3 months ago

Utility stocks are considered a safe investment for the reason you mentioned. Lots of retirement plans have utility stocks as part of them. Yield is lower than other investments because of the security with a utility company.

It's sad to hear all the people villianizing stockholders when they probably don't realize that normal people just like themselves own stocks like that.

jafs 4 years, 3 months ago

Isn't there an inherent conflict of interest for the state, since it regulates the utility and approves rate increases, for it to also invest in Westar?

Ron Holzwarth 4 years, 3 months ago

It's a good thing to invest in a company that has no competition.

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