EDMONTON, Alberta – The Board of Directors for Capital Power Corporation (TSX: CPX) (Capital Power) declared a dividend of $0.34 per share on the outstanding common shares for the quarter ending September 30, 2014. The dividend is payable on October 31, 2014 to shareholders of record at the close of business on September 30, 2014. The quarterly dividend of $0.34 per common share compared to the previous $0.315 dividend represents a 7.9% increase, and an annualized dividend of $1.36 per common share.
Capital Power also announced changes to its Dividend Reinvestment Plan (DRIP). Under the DRIP, eligible common shareholders were allowed to purchase additional common shares of Capital Power at a 5% discount to the average market price by reinvesting their dividends. The discount rate will be reduced to 3% effective with the third quarter 2014 dividend.
The Board of Directors also declared the following dividends on its Cumulative Rate Reset Preference Shares:
|Shares||TSX Stock Symbol||Dividend Per Share||Record Date||Payment Date|
|Series 1||CPX.PR.A||$0.2875||September 17, 2014||September 30, 2014|
|Series 3||CPX.PR.C||$0.2875||September 17, 2014||September 30, 2014|
|Series 5||CPX.PR.E||$0.28125||September 17, 2014||September 30, 2014|
The dividends for the common shares and preference shares are 100 per cent eligible dividends as defined by the Income Tax Act. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits that reduce the income tax otherwise payable on these dividends.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns more than 2,600 megawatts of power generation capacity at 14 facilities across North America and owns 371 megawatts of capacity through a power purchase agreement. An additional 490 megawatts of owned generation capacity is under construction in Alberta and Ontario.