NRG Energy (NRG) will increase its quarterly dividend by 900.0 percent to $0.30 per share in 2020. This big dividend hike comes after a 79.3 percent dividend cut to just 3 cents quarterly back in 2016 by the utility company.

The next dividend is payable on February 18, 2020 to stockholders of record as of February 3, 2020. A new annual rate of $1.20 per share yields 3.1% at a stock price of $38.52.

“Our stable and predictable cash flow affords us the ability to meaningfully return capital to our shareholders,” said Mauricio Gutierrez, NRG President and Chief Executive Officer in today's press release. “With our recent increase to the quarterly dividend, NRG is continuing to execute on our disciplined capital allocation principles.”

NRG Energy, Inc. is an energy company. The company’s core businesses include retail electricity and natural gas for residential, industrial and commercial consumers, including personal power solutions and Business Solutions, which includes C&I customers and other distributed and reliability products, and wholesale conventional generation primarily to support the retail business. NRG was incorporated as a Delaware corporation on May 29, 1992.