FirstEnergy Corp (FE) will raise its quarterly dividend by 2.6 percent to $0.39 per share in 2020. Last year the utility company announced a 5.6 percent dividend hike.

The next dividend is payable on March 1, 2020, to shareholders of record as of February 7, 2020. The new annual dividend rate of $1.56 per share yields 3.3% at a stock price of $46.59.

The dividend increase is consistent with FirstEnergy's policy, adopted last year, to target a payout ratio of 55% to 65% of the company's operating (non-GAAP) earnings, according to the company in today's press release.

FirstEnergy Corp. is an electric company, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York.  FirstEnergy's electric companies are Ohio Edison, The Illuminating Company, Toledo Edison, Met-Ed, Penelec, Penn Power, West Penn Power, Jersey Central Power & Light, Mon Power and Potomac Edison. The company's transmission subsidiaries operate more than 24,500 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. FirstEnergy Corp. was formed in 1997 through the merger of Ohio Edison Company and Centerior Energy Corporation.