TECO Energy Announces Dividend Increase of 3.7% to $0.85

TECO Energy, Inc. TE today announced at its regularly scheduled meeting that the Board of Directors set a 2011 dividend rate of $0.85 per share, up 3.7% from the current $0.82 per share. Subject to quarterly Board declarations, a quarterly dividend of $0.215 per share will be payable for the remaining three quarters of 2011. Concurrent with setting the 2011 dividend rate, the Board of Directors set a dividend policy that targets a payout ratio in a range between 60% and 70% of consolidated TECO Energy earnings per share, excluding charges or gains. Historically, the TECO Energy Board has considered the annual dividend rate at its second quarter meeting. Going forward, the review will occur at the Board's first quarter meeting.