RICHMOND, Va., Oct. 24 /PRNewswire-FirstCall/ -- The board of directors of Dominion (NYSE: D) has declared a quarterly dividend of 39.5 cents per share of common stock. Dividends are payable on Dec. 20, 2008, to shareholders of record Dec. 1, 2008.
Thomas F. Farrell II, chairman, president and chief executive officer, said:
"Last year we announced an 11 percent increase in our 2008 quarterly dividend. Our board remains confident in the financial strength of our company and has reconfirmed our previously announced policy to sustain similar-sized dividend increases in 2009 and 2010. These increases will target the goal of a 55 percent dividend payout ratio in 2010, which is more in line with the company's peer group."
Management anticipates that in January it will recommend to the board of directors an annual dividend rate in 2009 of $1.75 per share, or a quarterly dividend rate of 43.75 cents per share. This represents nearly an 11 percent increase over the current annual dividend rate of $1.58 per share. Implementation of the dividend increase would be subject to approval by the board of directors.
This is the 323rd consecutive dividend that Dominion or its predecessor company has paid holders of common stock. The company's last quarterly dividend was declared Aug. 7, 2008.
The board of directors of Virginia Electric and Power Company, a subsidiary of Dominion, also declared regular quarterly dividends at the prescribed rates on each of its series of preferred stock. Preferred dividends on the company's fixed-rate preferred stock are payable Dec. 20, 2008, to holders of record at the close of business Dec. 1, 2008.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 27,000 megawatts of generation, 1.1 trillion cubic feet equivalent of proved natural gas and oil reserves, 14,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation's largest natural gas storage facility with 975 billion cubic feet of storage capacity and serves retail energy customers in 12 states. For more information about Dominion, visit the company's Web site at http://www.dom.com/.
This release contains certain forward-looking statements that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's expectations may include factors that are beyond the company's ability to control or estimate precisely, such as fluctuations in energy-related commodity prices, the completion and/or timing of the closing of acquisitions or divestitures, estimates of future market conditions, estimates of proved and unproved reserves, the company's ability to meet its natural gas and oil production forecasts, the timing and receipt of regulatory approvals necessary for planned projects, acquisitions and divestitures, and the ability to complete planned construction or expansion projects as scheduled. Other factors include, but are not limited to, weather conditions, including the effects of hurricanes on operations, the behavior of other market participants, state and federal legislative and regulatory developments and changes to environmental and other laws and regulations, including those related to climate change, greenhouse gases and other emissions to which we are subject, economic conditions in the company's service area, risks of operating businesses in regulated industries that are subject to changing regulatory structures, changes to regulated gas and electric rates collected by Dominion, changes to rating agency requirements and ratings, changing financial accounting standards, trading counter-party credit risks, risks related to energy trading and marketing, adverse outcomes in litigation matters, and other uncertainties. Other risk factors are detailed from time to time in Dominion's most recent quarterly report on Form 10-Q or annual report on Form 10-K filed with the Securities and Exchange Commission.
CONTACT: Mark Lazenby, +1-804-819-2042, Mark.Lazenby@dom.com, or Ryan
Frazier, +1-804-819-2521, C.Ryan.Frazier@dom.com, both of Dominion
Web site: http://www.dom.com/