ALBUQUERQUE - TXNM Energy (NYSE: TXNM), an Albuquerque-based energy holding company, announced an increase in its annual dividend, reflecting a 5.2% hike to an indicated annual rate of $1.63 per share of common stock. The Board of Directors declared a quarterly dividend of $0.4075 per share, payable on February 14, 2025, to shareholders on record as of January 31, 2025. According to InvestingPro data, TXNM has maintained dividend payments for 29 consecutive years, with the current yield standing at 3.16%.
In a concurrent announcement, the Board of Directors of Public Service Company of New Mexico, a wholly-owned subsidiary of TXNM Energy, declared a quarterly dividend of $1.145 per share on the 4.58 percent series of cumulative preferred stock. This dividend is due on January 15, 2025, for shareholders recorded by December 31, 2024.
TXNM Energy delivers energy to over 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, including Texas-New Mexico Power (TNMP) and Public Service Company of New Mexico (PNM).
The increase in dividends is a move that typically signals confidence by a company's management in its financial stability and future earnings prospects. Dividend payments are often seen as a way to return value to shareholders, and an increase can be interpreted as a positive outlook on the company's ability to generate cash flow. The company's stock has shown strong momentum, gaining over 31% in the past six months, and currently trades near its 52-week high of $49.70.
However, it's important for investors to consider the entirety of a company's financial situation, including risks and market conditions, which can impact future performance. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with additional factors such as significant debt burden and cash burn requiring careful consideration. TXNM Energy's forward-looking statements in the press release are subject to numerous factors, many of which are beyond the company's control, and there is no guarantee that the company's future results will match these projections. For comprehensive insights, investors can access detailed Pro Research Reports covering this and 1,400+ other US stocks through InvestingPro.
The information for this report is based on a press release statement from TXNM Energy.
In other recent news, TXNM Energy reported second quarter 2024 earnings per share at $0.60, affirming its annual guidance range of $2.65 to $2.75 per share. Mizuho (NYSE:MFG) Securities and Evercore ISI raised TXNM Energy's stock price target, while Scotiabank (TSX:BNS) and Jefferies have initiated coverage on the company's shares. TXNM Energy's subsidiaries, PNM and TNMP, have made significant strides in their regulatory proceedings, with PNM reaching an unopposed settlement in its New Mexico rate case and TNMP settling its System Resiliency Plan.
The company also announced a $600 million infrastructure investment plan aimed at enhancing its distribution system. TXNM Energy's commitment to infrastructure investment reflects its ongoing efforts to meet the energy needs of its customers in a secure and reliable manner.
In personnel news, TXNM Energy announced the retirement of its CFO, Elisabeth A. Eden, no sooner than March 15, 2025, and the appointment of Brian G. Iverson as the new General Counsel. These are among the recent developments for TXNM Energy.
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