LAS VEGAS - Southwest Gas (NYSE:SWX) Holdings, Inc. (NYSE: SWX), the Las Vegas-based energy company, has announced a first quarter cash dividend for its common stock, marking a continued tradition since the company went public in 1956. Shareholders of record as of February 18, 2025, will receive a dividend of $0.62 per share, payable on March 3, 2025. This dividend rate results in an annualized distribution of $2.48 per share.
Southwest Gas Holdings, through its subsidiary Southwest Gas Corporation, is engaged in the purchase, distribution, and transportation of natural gas. Serving over 2 million customers in parts of Arizona, Nevada, and California, the company focuses on delivering safe and reliable service while pursuing sustainable energy solutions. Additionally, the company is the majority owner of Centuri Holdings, Inc., which provides utility infrastructure services across North America.
The announcement of the dividend follows the company's longstanding policy of providing quarterly dividends to its shareholders. The consistent dividend payments reflect the company's financial health and commitment to returning value to its investors.
This dividend declaration is part of the company's financial strategy and is an important aspect of Southwest Gas Holdings' relationship with its shareholders. The tax status of the company's dividend distributions and further dividend-related information can be accessed through the Investor Relations section of the Southwest Gas website.
The information in this article is based on a press release statement from Southwest Gas Holdings, Inc.
In other recent news, Southwest Gas Holdings Inc. reported a positive financial outlook in its Third Quarter 2024 Earnings Conference Call. The company projects a full-year utility net income between $233 million and $243 million, supported by significant customer growth with the addition of 41,000 new meter sets over the past year. Southwest Gas also highlighted its strong cash position, indicating no need for additional equity issuance in the near future.
The company recently completed the Centuri IPO and is continuing its transformation into a fully regulated natural gas utility. Southwest Gas is also engaged in ongoing regulatory discussions in Arizona, with new rates expected by spring 2025. The company's anticipated capital expenditure for 2024 is approximately $830 million, aimed at supporting system reliability and growth.
In terms of future expectations, the company projects a compounded annual growth rate for net income between 9.25% and 11.25% over the next three years. Developments like the TSMC Semiconductor Manufacturing Facility and large-scale data centers in Arizona and Nevada are expected to increase demand for natural gas services. Despite a decrease in consolidated adjusted EPS for Q3 2024, Southwest Gas remains optimistic about meeting net income targets and maintaining operational efficiency.
InvestingPro Insights
Southwest Gas Holdings' recent dividend announcement aligns with its impressive track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 3.13% and has maintained dividend payments for 54 consecutive years. This consistency is further underscored by an InvestingPro Tip indicating that SWX has raised its dividend for 17 consecutive years, demonstrating a strong commitment to increasing shareholder value over time.
The company's financial health appears solid, with InvestingPro data showing a market capitalization of $5.47 billion and revenue of $5.21 billion over the last twelve months as of Q3 2024. Despite a slight revenue decline of 5.06% during this period, an InvestingPro Tip suggests that analysts predict the company will remain profitable this year, which bodes well for continued dividend stability.
Investors should note that SWX is trading near its 52-week high, with a price-to-earnings ratio of 30.46. This valuation metric, combined with the company's dividend history, may interest income-focused investors. For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could provide deeper insights into Southwest Gas Holdings' financial position and future prospects.
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