| The Board of Directors will continue to review the dividend on an annual basis |
The Board of Directors of The AES Corporation approved a 100% increase in the Company’s quarterly common stock dividend, to $0.10 per share from $0.05 per share. The Board of Directors will continue to review the dividend on an annual basis. The Company expects the dividend to grow at an approximate 10% annual rate, consistent with Parent Free Cash Flow growth of 10% to 15% per year on average through 2018. The Board of Directors declared a quarterly common stock dividend of $0.10 per share payable on February 17, 2015, to shareholders of record at the close of business on February 3, 2015.
“I am pleased to announce that our Board of Directors has approved doubling our dividend, beginning in the first quarter of 2015,” said Andrés Gluski, AES President and Chief Executive Officer. “This decision reflects our strong and growing free cash flow, which is being driven by our $9 billion construction program underway. Through 2018, we will commission more than 7 GW of new or upgraded capacity, with most of our equity commitments already funded.”
“In order to maximise shareholder return, we are allocating significantly more of our cash towards our dividend,” said Tom O’Flynn, AES Executive Vice President and Chief Financial Officer. “This dividend increase demonstrates management’s confidence in the strength of our cash flow, which supports both a meaningful and growing dividend, and our business growth initiatives."