Contact Energy Drops Overseas Investments, Stock Looks Attractive For Income-Hungry Investors

Contact Energy recently announced the outcome of its proposed investments into geothermal investments overseas. The firm came to the conclusion that such investments were unlikely to create shareholder value. Consequently, management decided against investing in global geothermal opportunities and has instead opted to focus on distributing cash to shareholders. In light of this, the board announced a fully imputed special dividend of NZD 0.50 per share payable on 23 June 2015 and also revised its distribution policy to approximately 100% of underlying earnings after tax.