FirstEnergy (FE) Declares $0.55 Quarterly Dividend; 6% Yield

FirstEnergy Corp. (NYSE: FE) today declared an unchanged quarterly dividend of $0.55 per share, $2.20 annualized. FE also provided contingent dividend payment scenarios to reflect possible timing of the completion of FirstEnergy's pending merger with Allegheny Energy, Inc. (NYSE: AYE). Scenario #1: If the merger is not completed before the payment date of March 1, 2011, the full 55 cent-per-share dividend would be payable on March 1, 2011, to shareholders of record at the close of business on February 7, 2011. Ex-dividend is February 3, 2011. Scenario #2: If the merger is completed before March 1, 2011, FirstEnergy will pay two separate dividends that will total 55 cents per share. The timing and amount of these payments depend on the merger effective date. Scenario #3: If the effective date of the merger is on or after February 7, 2011, and before March 1, 2011: FirstEnergy would pay a dividend of 0.611 cents per share per day for the period from and including December 1, 2010, through the day before the merger effective date, to shareholders of record as of February 7, 2011 (or February 4, 2011 if the merger is effective on February 7). This dividend would be payable on March 1, 2011. Ex-dividend on February 25, 2011. A second pro rata dividend of 0.611 cents per share per day would be payable to shareholders of record at the close of business on the merger effective date, for the period from and including the effective date, through February 28, 2011. The second dividend would be payable within 30 days following the effective date of the merger. Scenario #4: If the effective date of the merger is before February 7, 2011: FirstEnergy would pay a dividend of 0.611 cents per share per day for the period from and including December 1, 2010, through the day before the merger effective date, to shareholders of record at the close of business on the day prior to the merger effective date. This dividend would be payable within 30 days following the effective date of the merger. A second pro rata dividend of 0.611 cents per share per day would be payable to shareholders of record at the close of business on February 7, 2011, for the period from and including the effective date, through February 28, 2011. The second dividend would be payable on March 1, 2011. Ex-dividend of February 25, 2011. Regardless, yield on the dividend is 6%.... Read more