PSEG Declares 3.6% Increase in Quarterly Dividend

NEWARK, N.J., Feb. 21, 2012 /PRNewswire/ -- The board of directors of Public Service Enterprise Group (NYSE: PEG) declared a 3.6% increase in the company's common stock dividend today.  PSEG has paid annual dividends on an uninterrupted basis since 1907.

The board increased the quarterly dividend to 35.5 cents per share, a 3.6% increase over the company's existing quarterly dividend rate of 34.25 cents per share.  The first dividend in 2012 is payable on March 31, 2012, to shareholders of record on March 9, 2012.

The board's action increases the indicated annual common stock dividend rate to $1.42 per share from $1.37 per share.  The board's action also represents a revision of the company's dividend payout policy from its prior stated goal of paying out 40% - 50% of earnings as dividends to a policy that pays out a greater percentage of earnings as dividends with an expectation for future dividend growth. 

Ralph Izzo, chairman, president and chief executive officer, said, "We are pleased to be able to increase the cash return to our shareholders. The dividend increase represents a re-set of our annual dividend rate. Our balance sheet has been strengthened, and our cash flow remains strong.  In addition, the contribution to earnings from our more stable, regulated business has grown as a percent of earnings, and is expected to continue to grow.  We made progress on our operational, capital investment and financial goals in 2011 which along with continued cash flow in our generation business should provide the support for future growth in the dividend. Growth would be in line with expectations for improvement in our regulated cash flow."  All future changes in the common stock dividend are subject to board approval.

Forward-Looking Statements

The statements contained in this communication about us and our subsidiaries' future performance, including, without limitation, future revenues, earnings, strategies, prospects, consequences and all other statements that are not purely historical, are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Although we believe that our expectations are based on information currently available and on reasonable assumptions, we can give no assurance they will be achieved. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. A discussion of some of these risks and uncertainties is contained in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: http://www.pseg.com. These documents address in further detail our business, industry issues and other factors that could cause actual results to differ materially from those indicated in this communication. In addition, any forward-looking statements included herein represent our estimates only as of the date hereof and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even if our internal estimates change, unless otherwise required by applicable securities laws.

Public Service Enterprise Group (NYSE: PEG) is a publicly traded diversified energy company with annual revenues of more than $12 billion, and three principal subsidiaries: PSEG Power, Public Service Electric and Gas Company (PSE&G) and PSEG Energy Holdings.  

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SOURCE Public Service Enterprise Group (PSEG)

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