PG&E, the California utility company, announced on Tuesday that it is reinstating its quarterly dividend after a six-year suspension. The company will pay a regular quarterly cash dividend of 1 cent per share on January 15th. The dividend had been halted in 2017 due to potential liabilities for wildfires in California.
In a news release, PG&E stated, "Reinstating the common dividend reflects Pacific Gas and Electric Company's (PG&E's) substantial progress in becoming a safe and stable utility that can now attract more long-term investors." The company also highlighted that it has reduced wildfire risk from its equipment by an impressive 94%.
"Our commitment to safety improvements is fundamental to our transformation into a stable and financially healthy utility," said Chief Executive Patti Poppe.
PG&E faced significant financial challenges and filed for bankruptcy in 2019 following substantial liability claims resulting from wildfires caused by its equipment.
On Tuesday, shares of PG&E saw a slight decline of 0.5% to $17.82. However, the stock has posted a year-to-date gain of 9.5%.