Shares of Scana Corp.
dropped 3.8% in premarket trade Thursday, after the South Carolina-based electric and natural gas utility said it slashed its quarterly dividend by 80%. The new quarterly dividend of 12.37 cents a share, down from 61.25 cents a share, will payable July 18 to shareholders of record on July 10. “The board made this reduction to preserve its options as the Company continues to seek a resolution to the recovery of costs for the VC Summer new nuclear construction project,” the company said in a statement. Based on Wednesday’s stock closing price of $36.79, the new annual dividend rate implies a dividend yield of 1.34%, down from 6.66%. That compares with the yields for the SPDR Utilities Select Sector ETF
of 3.38% and for the S&P 500
of 1.97%. Scana shares have tumbled 46% over the past 12 months, while the utilities ETF has slipped 1.1% and the S&P 500 has gained 11%.
View more information: https://www.marketwatch.com/story/scana-slashes-quarterly-dividend-80-2018-06-28