UPDATE: ISI Group Raises PT to $63 on Sempra Energy
ISI Group increases its price target to $63 on Hold-rated Sempra Energy (NYSE: SRE) following dividend increase.
ISI Group says, "SRE has been the best performing stock in our coverage universe, up 7.6% YTD. On its Q4 earnings call, SRE announced a 25% increase in its dividend (from $1.92 to $2.40 / sh), a current yield up to 4.1% from 3.3%. The implied payout ratio of 57% on '12 earnings is above the company's long-term target of 45-50%. The dividend will be partly supported by cash repatriated from S. American operations. Growth in the dividend will lag growth in earnings, as SRE grows into its payout target."
SRE closed at $58.71 a share on Friday.
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