OGE Energy Corp. (OGE) will raise its quarterly dividend by 3.9 percent to 40.25 cents per share in 2020. This follows a 6.2 percent increase to $0.3875 per share in 2019 and will mark the 14th consecutive annual dividend increase by the utility company.

The next dividend will be paid Oct. 30, 2020, to shareholders of record Oct. 13, 2020. The new annual rate of $1.61 per share yields 5.4% at a stock price of $29.66. The average dividend growth rate in the last five years is 7.9 percent annually.

"Strong operational execution at the utility has enabled us to increase our dividend for the 14th consecutive year," said Sean Trauschke, Chairman, President and CEO of OGE Energy in the company's press release dated September 28, 2020 annoucing this dividend hike. "We realize many of our shareholders count on our dividend for income, and I am grateful for the hard work and dedication of our members to provide value to our shareholders during these difficult times."

The company will now pay an estimated annual dividend of $322 million to shareholders. This new dividend hike announced today is the smallest by OGE Energy since 2010, when the dividend was raised by 3.5 percent. The last time the company announced a double digit dividend hike was in 2016 (+10.0 pct). 

OGE Energy Corp is the parent company of OG&E, a regulated electric utility. OGE Energy, incorporated in August 1995, is a holding company with investments in energy and energy services providers offering physical delivery and related services for both electricity and natural gas primarily in the south central U.S. with customers in Oklahoma and Western Arkansas. OGE holds 25.5 percent limited partner interest and 50 percent general partner interest in Enable Midstream Partners LP. Activities are conducted through two business segments: electric utility and natural gas midstream operations. OGE Energy and its predecessor companies have paid an uninterrupted dividend to its shareholders every year since at least 1947.