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Vistra announces dividends for common and preferred stock

Published 10/30/2024, 04:56 PM
VST
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IRVING, Texas - Vistra Corp (NYSE: VST), a Fortune 500 integrated retail electricity and power generation company, has declared dividends for its common stock and two series of preferred stock, as announced by the company's board of directors today.

Common stockholders are set to receive a quarterly dividend of $0.2215 per share, with an aggregate payment of approximately $75 million for this quarter. The dividend is payable on December 31, 2024, to shareholders on record by December 20, 2024, which is also the ex-dividend date.

In addition to the common stock dividend, Vistra's board has declared semi-annual dividends for two series of preferred stock. Holders of the 7.0% Series B Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock will receive a dividend of $35.00 per share. This Series B dividend, translating to $70.00 per share on an annualized basis, is due on December 16, 2024, to stockholders of record as of December 1, 2024.

Similarly, the 8.875% Series C Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock will carry a dividend of $44.375 per share, or an annualized amount of $88.75 per share. The payment for Series C is scheduled for January 15, 2025, to stockholders of record on January 1, 2025.

Vistra, headquartered in Irving, Texas, operates across the United States, from California to Maine. The company emphasizes reliability, affordability, and sustainability as it manages a diverse power generation fleet, including natural gas, nuclear, coal, solar, and battery energy storage. Vistra also adopts a customer-centric approach to its retail business, aiming to meet the evolving demands of its customer base.

Today's announcement reflects the company's commitment to delivering value to its shareholders. The dividends are part of Vistra's financial strategy, as it continues to navigate the energy sector's ongoing transformation. This information is based on a press release statement from Vistra Corp.

In other recent news, Vistra Corp has strengthened its financial position by amending its credit agreement, extending the maturity date and increasing its borrowing capacity. The company has raised its revolving credit commitments from $3.175 billion to $3.440 billion, providing Vistra Operations, an indirect wholly-owned subsidiary, with enhanced financial flexibility.

Simultaneously, JPMorgan initiated coverage on Vistra Energy (NYSE:VST) shares with an Overweight rating, highlighting potential benefits from natural gas production growth and market volatility. The firm also pointed out the company's potential to capitalize on fluctuations in power prices.

In addition, Vistra's second-quarter 2024 ongoing operations adjusted EBITDA showed a 40% year-over-year improvement, reaching $1.414 billion. This performance is attributed to the company's diversified portfolio and robust retail business.

RBC Capital Markets, Jefferies, and BMO Capital Markets have all recently upgraded their outlooks on Vistra, citing strategic decisions and growth potential. Notably, Vistra's acquisition of a 15% non-controlling interest in Vision for $3.25 billion has been highlighted as a significant strategic move, expanding its portfolio and market presence.

Lastly, the Public Utility Commission of Texas shortlisted 17 natural gas power plant projects, including those proposed by Vistra, for potential funding from the Texas Energy Fund. These recent developments underscore Vistra Energy's strategic market position and growth prospects.

InvestingPro Insights

Vistra Corp's recent dividend declaration aligns with its track record of shareholder value creation. According to InvestingPro data, the company has raised its dividend for 5 consecutive years, demonstrating a commitment to returning capital to shareholders. The current dividend yield stands at 0.69%, with a notable dividend growth of 7.6% over the last twelve months as of Q2 2024.

Vistra's financial performance has been robust, with the company posting a revenue of $14.06 billion in the last twelve months as of Q2 2024. The company's profitability is evident, with a gross profit margin of 34.68% and an operating income margin of 13.08% during the same period.

Investors have taken notice of Vistra's performance, as reflected in its stock price. The company has seen an impressive year-to-date price total return of 231.59% as of the latest data. This strong performance extends to longer time frames, with a one-year price total return of 294.27%.

InvestingPro Tips highlight that management has been aggressively buying back shares, which, coupled with the dividend policy, underscores the company's focus on shareholder returns. Additionally, analysts predict that Vistra will be profitable this year, supporting the company's ability to maintain its dividend commitments.

For those interested in a deeper dive into Vistra's financials and future prospects, InvestingPro offers 12 additional tips, providing a comprehensive view of the company's investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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