Case | HBS Case Collection | March 1995 (Revised December 1995)

Dividend Policy at FPL Group, Inc. (A)

by Benjamin C. Esty and Craig F Schreiber


A Wall Street analyst has just learned that FPL (the holding company for Florida's largest electric utility) may cut its dividend in several days despite a 47-year streak of consecutive dividend increases. In response to the deregulation of the electric utility industry, FPL has substantially revised its competitive strategy over the past several years. The analyst must decide whether a change in dividend policy will be a part of FPL's financial strategy in this deregulated environment.

Keywords: Investment Return; Corporate Strategy; Policy; Competitive Strategy; Financial Strategy; Fluctuation; Energy Sources; Emerging Markets; Utilities Industry; Energy Industry; Florida;


Esty, Benjamin C., and Craig F Schreiber. "Dividend Policy at FPL Group, Inc. (A)." Harvard Business School Case 295-059, March 1995. (Revised December 1995.)