Natural Gas Stocks Continue Sending Dividends Home

DividendChannel.com
July 29, 2011

According to Dividend Channel, in trading on Friday, shares of Piedmont Natural Gas Co., Inc. (PNY) were yielding above the 4% mark based on its quarterly dividend (annualized to $1.16), with the stock changing hands as low as $28.80 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2011 and each share was worth $80.78 on that date, a mere $2.51 or 3.2% increase over eleven years. But now consider that you collected a whopping $9.69 per share in dividends over the same period, increasing your return to 20.27%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.7%; so by comparison collecting a yield above 4% would appear considerably attractive if that yield is sustainable. Piedmont Natural Gas Co., Inc. (PNY) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Piedmont Natural Gas Co., Inc., looking at the history chart for PNY below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 4% annual yield.

PNY Dividend History


Date

Div*


06/22/11

0.290


03/23/11

0.290


12/22/10

0.280


09/20/10

0.280


06/22/10

0.280


03/23/10

0.280


12/23/09

0.270


09/22/09

0.270


06/23/09

0.270


03/23/09

0.270


12/23/08

0.260


09/23/08

0.260


06/23/08

0.260


03/20/08

0.260


12/20/07

0.250


09/20/07

0.250


06/20/07

0.250


03/21/07

0.250


12/19/06

0.240


09/20/06

0.240


06/20/06

0.240


03/22/06

0.240


12/21/05

0.230


09/21/05

0.230


06/22/05

0.230


03/22/05

0.230


12/20/04

0.215


09/22/04

0.215


06/22/04

0.215


03/23/04

0.215


12/19/03

0.207


09/22/03

0.207


06/20/03

0.207


03/21/03

0.207


12/20/02

0.200


09/20/02

0.200


06/20/02

0.200


03/21/02

0.200


12/20/01

0.193


09/20/01

0.193


06/20/01

0.193


03/20/01

0.193


12/20/00

0.182


09/20/00

0.182


06/21/00

0.182


03/22/00

0.182


12/21/99

0.172


09/22/99

0.172


06/22/99

0.173


03/23/99

0.172


12/21/98

0.163


09/22/98

0.163


06/22/98

0.163


03/23/98

0.163


12/19/97

0.152


09/22/97

0.152


06/20/97

0.152


03/21/97

0.152


09/20/96

0.145


06/20/96

0.145


03/21/96

0.145


12/20/95

0.138


09/20/95

0.138


* Data may be adjusted for splits; we are not responsible for data errors; always verify data with the company.




PNY+Dividend+History+Chart
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PNY+Dividend+History+Chart

According to the ETF Finder at ETF Channel, PNY makes up 9.29% of the S&P SmallCap Utilities Portfolio ETF (PSCU) which is trading lower by about 0.2% on the day Friday.

See what other ETFs contain PNY »

See what other stocks are held by PSCU »

PNY operates in the Gas Utilities sector, among companies like Star Gas Partners L.P. (SGU) which is up about 0.5% today, and Chesapeake Utilities Corp. (CPK) trading higher by about 0.5%. Below is a three month price history chart comparing the stock performance of PNY, versus SGU and CPK.

PNY,SGU,CPK Relative Performance Chart
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PNY,SGU,CPK Relative Performance Chart

Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with a special 20% off coupon from Forbes and 30 Days Free.