CEMIG Raises Quarterly Dividend by 10.37%

Companhia Energética de Minas Gerais - CEMIG (CIG-C) raised its quarterly dividend to $0.047719 per share from $0.043235, a 10.37% increase. The utility’s shares are scheduled to trade ex-dividend on May 14, 2026.

Based on the locked dividend data, CEMIG’s annual dividend is $0.16 per share, implying a forward annual yield of 5.34% at a $3 share price. The increase extends the company’s dividend growth streak to 2 consecutive years, following a prior cut in 2023.

Business Context

CEMIG is a Brazil-based utility serving Minas Gerais and operating across electricity distribution, generation, transmission and related energy businesses. The company says its concession area covers about 97% of Minas Gerais’ territory, and its distribution arm serves customers across the state through one of Brazil’s largest electricity networks, according to CEMIG’s corporate site (https://www.cemig.com.br/en/concessoes/).

The dividend increase comes after CEMIG reported first-quarter 2026 net income of R$979 million and adjusted EBITDA of R$1.79 billion. In its results release, the company cited stronger distribution EBITDA, helped by a tariff adjustment in effect since May 2025, lower post-employment expenses and performance on energy losses, while trading results were pressured by higher energy purchase costs and undelivered energy tied to wind and solar power purchase agreements (https://ri.cemig.com.br/docs/Press-release-Cemig-2026-03-31-7pkQpfjG.pdf).

CEMIG also reported that capital expenditure rose to R$1.48 billion in the quarter, with the bulk directed to regulated businesses, and that leverage stood at 2.45 times net debt to adjusted EBITDA. Those figures point to a company still balancing shareholder distributions with investment needs in regulated utility assets (https://ri.cemig.com.br/docs/Press-release-Cemig-2026-03-31-7pkQpfjG.pdf).

CEMIG’s investor-relations site lists a dedicated dividends and interest-on-capital history and describes its published shareholder remuneration policy, underscoring that dividends are a recurring part of the company’s capital-return framework (https://ri.cemig.com.br/en/financial-information/dividends-and-jcp).

What It Means for Income Investors

For income-focused holders, the latest action raises the quarterly cash rate and keeps CEMIG in dividend-growth territory after the 2023 cut. The safety score of 55 out of 100, or a C grade, suggests the payout is neither among the strongest nor the weakest in the dividend universe. Investors tracking the stock for income will likely focus on whether regulated earnings, leverage and capital spending leave room for further dividend growth beyond this 2-year streak.