Confirmation of Dividend Growth Policy
0n May 19th, 2010, Scottish and Southern Energy announced its future dividend intentions, saying it would increase its full-year dividend by at least 2 percent more than Retail Price Index inflation in each of the next three years, as follows:
RNS Number : 1601M
Scottish & Southern Energy PLC
19 May 2010
SCOTTISH AND SOUTHERN ENERGY PLC
DIVIDEND TARGETS TO 2013
SSE (Scottish and Southern Energy plc) has set a target to increase its full-year dividend per share by at least 2% more than Retail Price Index (RPI) inflation* in each of the three financial years to March 2013, with annual above-inflation increases also being targeted for the subsequent years.
Between 2007 and 2010, Scottish and Southern Energy has targeted dividend increases of at least 4% above inflation in each of the three financial years, with sustained real growth thereafter. It has decided to recommend to shareholders a final dividend of 49p per share for the year to March 2010, making a full-year dividend of 70p, an increase of 6.1% on the previous year.
The first full-year dividend (25.7p per share) paid by SSE after it was formed was in 1999. The recommended full-year dividend increase of 6.1% for 2010 represents its eleventh successive annual above-inflation dividend increase. SSE is one of just seven FTSE 100 companies to have delivered better-than-inflation dividend growth every year during this period.
The achievement of the targets for the next three years will mean SSE will have delivered 14 successive above-inflation annual dividend increases. Assuming inflation of 2.8% (the average rate in the five years to March 2010) over each of the next three years, the achievement of these above-inflation targets will mean SSE's full-year dividend per share in 2013 will reach at least 80p, which is more than three times the first dividend it paid, in 1999.
* Based on the average annual rate of inflation in each of the 12 months to March
The above mentioned announcement is an abridged version of the full announcement which can be found HERE
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