FirstEnergy Declares 4.5% Increase in Quarterly Dividend
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy FE?
Source: PRnewswire
- Dividend Increase: FirstEnergy has declared a quarterly dividend of $0.465 per share, representing a 4.5% increase from the previous quarter, reflecting the company's successful execution of its strategy in investing in the reliability and resiliency of the electric system, with an expected total dividend of $1.86 per share in 2026, indicating confidence in future profitability.
- Strategic Execution: CEO Brian X. Tierney emphasized the significant progress made in business transformation over the past three years, enhancing the company's ability to deliver value to customers, communities, and investors, underscoring its leadership position in the electric utility sector.
- Market Coverage: As one of the largest investor-owned electric systems in the U.S., FirstEnergy serves over 6 million customers across multiple states including Ohio, Pennsylvania, and New Jersey, highlighting its critical role in the energy market.
- Future Outlook: The company plans to maintain a core earnings payout ratio of 60-70% for dividends in 2026, demonstrating a balance between stable dividends and ongoing investments, aimed at addressing potential economic fluctuations and market challenges ahead.
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Analyst Views on FE
Wall Street analysts forecast FE stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 48.840
Low
46.00
Averages
49.25
High
54.00
Current: 48.840
Low
46.00
Averages
49.25
High
54.00
About FE
FirstEnergy Corp. and its subsidiaries are involved in the transmission, distribution, and generation of electricity through its segments: Distribution, Integrated and Stand-Alone Transmission. The Distribution Segment, which consists of the Ohio Companies and FirstEnergy Pennsylvania Electric Company (FE PA), distributes electricity in Ohio and Pennsylvania. The Integrated segment includes the distribution and transmission operations under Jersey Central Power & Light Company (JCP&L), Monongahela Power Company (MP) and The Potomac Edison Company (PE), as well as MP's regulated generation operations. The segment distributes electricity in New Jersey, West Virginia and Maryland, provides transmission infrastructure, and operates 3,604 MWs of regulated net maximum generation capacity. The Stand-Alone Transmission segment consists of its ownership in FET and KATCo, which includes transmission infrastructure owned and operated by the Transmission Companies and used to transmit electricity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Solar Project Expansion: In addition to the gas plant, Mon Power and Potomac Edison are seeking approval for three new solar projects totaling 70 MW, to be built on former industrial and reclaimed mining lands, further diversifying their energy portfolio and supporting renewable energy development.
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- Credibility Recovery Progress: Despite the $60 million bribery scandal, FirstEnergy's upgrade by Wolfe indicates progress in rebuilding its corporate credibility, which may attract more investor interest.
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- Project Timeline: If approved by the West Virginia Public Service Commission, construction is anticipated to begin in 2027, with the plant expected to come online by late 2031, reflecting the companies' proactive planning for future electricity demand growth.
- Solar Resource Expansion: The companies are also seeking approval for 70 megawatts of new solar generation on former industrial and reclaimed mine lands, which will complement their existing 30-megawatt solar portfolio, supporting clean energy development and creating construction jobs.
- Customer Service Commitment: Mon Power and Potomac Edison currently serve approximately 395,000 and 285,000 customers, respectively, and the new power projects will further enhance their service capabilities in West Virginia, ensuring they meet the rapidly growing electricity needs.
See More
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- New Power Plant: Mon Power and Potomac Edison plan to construct a 1,200-megawatt natural gas power plant in Maidsville, West Virginia, expected to supply electricity to approximately 500,000 homes, thereby enhancing the region's energy supply capacity to meet growing demand.
- Project Timeline: If approved by the West Virginia Public Service Commission, site work is anticipated to commence in 2027, with the plant expected to come online by late 2031, demonstrating the companies' long-term commitment to future power supply reliability.
- Solar Project Expansion: The companies are also seeking to add 70 megawatts of solar generation on former industrial and reclaimed mine lands, including several smaller projects, aimed at further diversifying their renewable energy portfolio while supporting U.S. manufacturing and creating construction jobs.
- Customer Service Commitment: Mon Power and Potomac Edison currently serve 395,000 and 285,000 customers respectively, and these new power initiatives will ensure the companies continue to provide reliable and affordable electricity over the next decade, enhancing customer satisfaction and market competitiveness.
See More
