CVPS Raises Dividend by 5 Percent.Energy Editors/Business Editors RUTLAND, Vt.--(BUSINESS WIRE)--Jan. 12, 2004 Citing improving cash flow and solid, stable earnings, Central Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. Public Service directors approved a 5 percent increase in the company's common stock dividend Monday. The quarterly cash dividend will increase from 22 cents to 23 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , resulting in an annual payment of 92 cents per share. The dividend increase is the first since August 1996. "This is a conservative increase intended to reward shareholders for their investment and support," President Bob Young said. "We have made tremendous strides over the past few years to create a solid, stable company, and that stability brings opportunities. "As we determine what to do with free cash flow going forward, we will carefully balance dividends, reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. in the utility business, debt refinancing Refinancing An extension and/or increase in amount of existing debt. needs and investment in Catamount catamount: see puma. Energy, which is moving quickly to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. wind energy prospects. "We will evaluate the possibility of future dividend increases and investment opportunities. The evaluation will be based on cash strength, credit, earnings, and the Right Way to Work, which is our program to drive out unnecessary costs," Young said. Chief Financial Officer Jean Gibson said the dividend increase was particularly valuable to shareholders in light of tax changes approved by Congress last year. "Our commitment to cutting costs is bearing fruit for our customers and shareholders alike," Gibson said. "It has allowed us to hold rates flat for an extended period of time while providing solid total returns to our owners." The dividend is payable Feb. 13, 2004, to common shareholders of record at the close of business on Jan. 28, 2004. |
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