Dominion Resources Inc. raised its 2010 dividend rate by 4.6 percent and reaffirmed its October 2007 policy to achieve a 55 percent payout ratio by 2010.
The Richmond, Va., power company boosted its 2010 dividend rate to $1.83 per share, up from $1.75 per share this year.
"Building on two consecutive 11 percent increases in the annual dividend rate, the board has reaffirmed its 2007 promise of achieving a payout ratio that is in line with our utility peers," said CEO Thomas Farrell.
The first quarterly dividend of 45.75 cents per share will be payable March 2010, Dominion said.
Shares of Dominion closed at $38.96 on Thursday.