Gabelli Reports Reinstatement Of A Divident For El Paso Electric Company

According to Gabelli, El Paso Electric Company EE announced that on 3/21 its Board of Directors approved the reinstatement of a dividend as well as an additional 2.5 mm share repurchase program. Gabelli reported that management believes that the payment of dividends will allow it trade closer to its industry peers and provide access a larger investor base. “We view both the reinstatement of the dividend and new repurchase program as prudent, incremental positives that provide value to shareholders. EE trades at 13.4X and 12.6X our 2011 and 2012 earnings estimates, which compares favorably to peer group multiples of 14.4X and 13.2X.” El Paso Electric Company closed yesterday at $28.97.