Quebec renewable energy producer Innergex reduces its dividend by 50%.
The annual dividend paid to shareholders is thus revised to 36 cents per share, which should free up approximately $75 million per year to support the company’s “growth ambitions”.
This update to the capital allocation strategy was announced late Wednesday during the presentation of the year-end financial performance.
Innergex’s dividend payout ratio, which had been at or above 100% of free cash flow for five years, was intensely fueling speculation. So much so that the dividend yield crossed the 10% mark this week.
Furthermore, due to recent macroeconomic trends, Innergex is abandoning its previously announced financial targets for 2025. Management will discuss its results in a conference call with analysts on Thursday before markets open.