Capital Power Corporation (CPC) dividends are declared for the closing of business quarter yesterday, and its common and cumulative rate reset preference shares.
The company’s Board of Directors stated a $0.315 per share dividend on the company’s outstanding common shares for the last quarter. August 10, 2014 will mark the dividend’s payment to shareholders. This is believed to be also impacted by the unaudited normalized earnings of the company of $32 million for the past six months ($0.39 per share). The earnings are attributed with fair value and one-time items adjustments amounting to $6 million ($0.07 per share). EBITDA adjustment ($191 million from $239 million from last year) has become evident as revenues total to $548 million (lower than prior year’s $686 million)
The CPC dividends for the Cumulative Rate Reset Preference Shares (CRRPS) are also declared by the board. Its July 29 dividends per share of $0.2875 (CPX.PR.A), $0.2875 (CPX.PR.C), and $0.28125 (CPX.PR.E), have their payment date records on July 30, 2014. Income Tax Act defines the dividends as 100% eligible. The act allows Canada’s individual residents to enhance tax credits of dividends, which allow them to reduce their income taxes or else will be payable on the dividends.
Apart from the announcement of dividends, changes in the Dividend Reinvestment Plan (DRIP) has also been declared by the power producer. DRIP allows shareholders to get a discount of 5% in purchasing additional common shares in the company based on the average market price. The change will drop 2% off the normal discount percentage (3% discount), which will be effective with 2014’s dividend for the third quarter.
Following the announcement of dividends, the Board of Directors permitted the 7.95% increase in holders’ annual dividend (an increase to $1.36 per common share from $1.26 per common share). The launch of this dividend increase is effective in the year’s third quarter. The payment of the dividend to shareholders (inclusive of the company’s quarter end on September 30, 2014) is expected on October 31, 2014.
CPC is a power producer managed by an independent sector. It is a growth-oriented company situated in Edmonton, Alberta. Capital Power Corporation develops, purchases, operates, and improves the generation of power from various energy sources. Presently, it has 14 facilities across North America, worth 2,600 megawatts of capacity. A power purchase agreement also made Capital Power own up extra 371 megawatts of capacity. Alberta and Ontario’s additional 490 megawatts of capacity are still under assembly.