PNM Resources (PNM) has ramped up its quarterly dividend by 6.5% to $0.3275 per share from $0.3075. The energy company said that the new dividend will be paid on Feb. 16, 2021, to shareholders of record as on Feb. 3, 2021.
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PNM Resources’ annual dividend of $1.31 per share, now reflects a dividend yield of 2.7%. The company said, “This is consistent with the company’s stated target to pay out 50 to 60 percent of annual ongoing earnings.”
Concurrent with the dividend hike, the company announced that it is set to report its 2020 results on Dec. 17. PNM had forecasted 2020 earnings in the range of between $2.23 per share and $2.31 per share. (See PNM stock analysis on TipRanks)
On Nov. 18, Barclays analyst Eric Beaumont downgraded PNM Resources stock to Sell from Hold citing lower projected return given its pending acquisition by Avangrid and lesser chances of an increased bid. He maintained a price target of $50 (1.5% upside potential).
Like Beaumont, the Street is also sidelined on the stock. The Hold analyst consensus is based on 5 Holds, 2 Buys and 1 Sell. The average price target stands at $49.76 and implies upside potential of about 1.1% to current levels. Shares were down 2.9% year-to-date.
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