Scottish and Southern ready to up dividend

SCOTTISH and Southern Energy is on track to hike its dividend by at least two per cent above inflation this year, the firm said in a trading update.

The gas and electricity provider promised to raise its dividend payments above the retail price index measure of inflation, as well as maintaining dividend coverage.

Scottish and Southern said it has commissioned 90 megawatts of new onshore wind farms since the start of the financial year, adding to around 1,000 megawatts worth of projects currently under construction.

The firm is half way through its five-year investment drive, which will come to an end in March 2013. Last week, Scottish and Southern agreed a contract with Nissan to provide the carmaker with its own electricity network. Nissan needs a network to allow electric car users to charge their vehicles.

The company is set to release its interim results in November. Shares fell 1.5 per cent to £11.18 yesterday.