Utility Dividend Promise Fades as Weak Prices Cut Profit
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U.S. utilities’ promise of providing steady returns and plump dividends to investors is fading as growing competition erodes prices and profits.
FirstEnergy Corp., owner of electricity providers in six states, yesterday said it will cut its dividend by 35 percent. The Akron, Ohio-based company was the second large utility in the past 11 months to cut its payout as sales declined. Chicago-based Exelon Corp. chopped its dividend by 41 percent last February.