PG&E Corporation Stock Fell as Much as 18% Today: Here's What Investors Need to Know
After market close on Dec. 20, PG&E Corporation (NYSE: PCG) announced that its board of directors voted to suspend the utility's dividend. Before the announcement, investors were expecting to get $0.53 per share each quarter, which worked out to a 4% yield at share prices before trading after the announcement was made. At 1:40 p.m. EST on Thursday, Dec. 21, PG&E's share price is down 13.7%, and had been down nearly 18% at one point in late-morning trading.
While PG&E's financial performance has been fine and the dividend was pretty solid -- its dividend payout ratio was less than 45% over the past 12 months -- the recent wildfires in California this year have created significant financial risk for the company, since there is speculation that the company's equipment may have been responsible for, or contributed to, more than one of the October wildfires in Northern California that killed more than three dozen people and destroyed more than $9 billion in property .
PG&E is at risk of substantial losses if it is found responsible for recent wildfires in Northern California. Image source: Getty Images.
Source: Fool.com
Pacific Gas & Electric Comp. Stock
Our community is currently high on Pacific Gas & Electric Comp. with 15 Buy predictions and 5 Sell predictions.
With a target price of 19 € there is a slightly positive potential of 12.81% for Pacific Gas & Electric Comp. compared to the current price of 16.84 €.
