German Utility E.ON has Stable Growth and Solid Dividend Yield

Germany-based E.ON is one of the largest natural gas and electricity producer in the world. The ADR stock trades on the OTC with ticker EONGY.Currently it pays a juicy 5.79% dividend and has a $65B market cap. From its March lows of $22 the ADR has nicely rebounded to close at $35.54 today.

The following are some interesting points pulled from E.ON’s corporate site:

  • E.ON was formed in June 2000 by the merger of VEBA and VIAG, two of Germany’s largest industrial groups
  • E.ON has about 74 GW of installed generating capacity, making us one of the world’s leading power producers.
  • Operate and market an inter-regional gas pipeline system in Germany with a system length of 11,552 kilometers
  • 93,500 employees generated just under EUR87 billion in sales in 2008
  • Electricity and gas sales increased by 26% and 12% in 2008 over 2007
  • The dividend payout amount has increased every year since 2004
  • Since 2004,  yearly dividend payments also increased consistently
  • The 2009 Annual Shareholders Meeting, has approved on May 6, 2009 the cash dividend be increased by 9.5 percent, from EUR1.37 per share for the 2007 financial year to EUR1.50 per share for the 2008 financial year
  • Since the 2003 financial year, the dividend amount has increased by an average of 17.5% per year
  • US and Canadian investors hold 27.4% of all free float stock

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