PPL Corporation Increases Common Stock Dividend

Eighth consecutive year of dividend increases

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Feb 26, 2010, 11:04 ET

ALLENTOWN, Pa., Feb. 26 /PRNewswire-FirstCall/ -- PPL Corporation (NYSE: PPL) on Friday (2/26) announced an increase to its common stock dividend, marking the eighth consecutive year of increased dividends paid to its shareowners.

The company has increased its quarterly dividend rate from $0.345 to $0.35 per share, or from $1.38 to $1.40 per share on an annualized basis. This increased dividend is payable April 1, 2010, to shareowners of record as of March 10, 2010.

This is the company's 257th consecutive quarterly dividend, and based on the company's closing stock price Thursday of $28.83 per share, this increase will bring the current dividend yield on PPL common stock to 4.9 percent.

The increase also will bring the 2010 payout ratio to 42 percent based on the $3.30 per share midpoint of the company's 2010 earnings forecast of $3.10 to $3.50 per share. PPL reiterated its earnings guidance for 2010 on its quarterly earnings conference call on Feb. 5.

"We recognize the value of a strong dividend to investors, and we think a modest increase in the dividend rate is prudent at this time, especially given the current economic environment," said Paul Farr, PPL's executive vice president and chief financial officer.

PPL Electric Utilities Corporation, a PPL subsidiary, on Friday also declared the following quarterly dividends on its preferred stock and preference stock, payable April 1, 2010, to shareowners of record as of March 10, 2010.

    
    
    
    
    Preferred Stock
    4-1/2%            $1.125
    3.35% Series      $0.8375
    4.40% Series      $1.10
    4.60% Series      $1.15
    6.75% Series      $1.6875
    
    Preference Stock
    6.25% Series      $1.5625 ($0.390625 per depositary share)

Each depositary share represents a 1/4 interest in a share of the preference stock. Accordingly, holders of record of the depositary shares will receive a dividend equal to 1/4 of the dividend paid on the preference stock.

PPL Corporation, headquartered in Allentown, Pa., owns or controls nearly 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom. More information is available at www.pplweb.com.

SOURCE PPL Corporation