CEMIG Raises CIG-C Dividend 10.4% to $0.0477

Companhia Energética de Minas Gerais, or CEMIG, increased the quarterly CIG-C dividend to $0.0477 per share from $0.0432, a 10.4% raise. The next ex-dividend date is September 28, 2026, and the stated annual dividend is $0.15 per share.

Why the dividend changed

CEMIG did not attribute the higher CIG-C rate to a split, merger, spin-off or special distribution. Its shareholder notice characterized the underlying capital return as interest on equity, a form of shareholder remuneration used in Brazil, and said the declaration was approved by the executive board. The notice did not identify a single operating development as the reason for the higher dollar-denominated rate. CEMIG’s shareholder notice

The increase instead arrives alongside stronger operating performance in CEMIG’s regulated distribution business and continued investment in its networks. In the second quarter, adjusted EBITDA rose 9.3% from a year earlier, while distribution EBITDA increased 19.0%. CEMIG attributed the distribution improvement to the tariff adjustment, lower post-employment expenses and energy-loss performance. Those gains were partly offset by weaker energy trading and higher financial expenses. CEMIG’s second-quarter earnings release

Cash requirements remain substantial. CEMIG invested R$3.28 billion during the first half, an increase of 19.2%, with most spending directed to regulated businesses. The company plans R$43.70 billion of investment from 2026 through 2030. Net debt rose during the second quarter, although CEMIG extended its maturity profile and said 81% of debt matures in 2029 or later. The dividend increase therefore accompanies expanding regulated earnings, but it also sits within a capital plan that requires continued cash generation and access to financing. CEMIG’s second-quarter earnings release

Dividend track record

The payment history is uneven because CEMIG distributes shareholder returns through multiple declarations rather than a uniform sequence of identical quarterly payments. Recent CIG-C payments were $0.0432 with a March 30, 2026 ex-date, $0.0467 with a May 14, 2026 ex-date and $0.0429 with a July 2, 2026 ex-date. The new $0.0477 rate is above each of those amounts.

Full-year totals show growth interrupted by a cut. Annual payments rose from $0.06 in 2020 to $0.13 in 2021 and $0.21 in 2022. They then fell 17.5% to $0.17 in 2023 before recovering to $0.24 in 2024 and $0.31 in 2025. The annual total increased 38.4% in 2024 and 28.3% in 2025, producing two consecutive years of dividend growth after the 2023 cut.

The payment count also varied, from three payments in both 2020 and 2021 to six in 2022, five in 2023 and six in both 2024 and 2025. The five-year record is 35.5% annual growth, but that figure should be read alongside the fluctuating payment schedule and the 2023 reduction. CEMIG’s investor-relations site likewise records both dividends and interest on equity in its distribution history. CEMIG’s dividend information

Is the dividend covered?

The dividend consumes 79% of earnings. That indicates earnings cover the distribution, but the retained portion provides less room to absorb weaker profits, finance investment or reduce debt than a materially lower payout ratio would provide.

SmarterDividends assigns CEMIG’s dividend a safety score of 55 and a grade of C. That grade means borderline on the 50-65 scale. It reflects coverage that is presently positive but not wide, together with an irregular payment record that includes the 2023 annual cut. The latest increase does not by itself remove those constraints.

Yield and valuation

At a share price of $3.20, CIG-C has a 4.58% forward yield, compared with a 4.36% median for the Utilities sector. The shares have recorded a 24.1% gain over one year, while the company’s market value is $9.2 billion.

SmarterDividends estimates fair value at $8.35 and classifies CIG-C as undervalued, with 149% upside to fair value. That is a model-based valuation assessment rather than a forecast of the future share price. At the stated annual rate, 100 shares produce $15.00 of annual dividend income.

What to watch

The immediate date for income investors is September 28, 2026, when CIG-C is next scheduled to trade ex-dividend. Subsequent declarations will show whether the $0.0477 payment becomes a stable reference rate or remains part of CEMIG’s historically variable distribution pattern.

CEMIG’s next scheduled operating update is its third-quarter earnings release on November 12, 2026. Relevant items include distribution earnings after the tariff adjustment, losses in the trading business, capital spending, debt and financial expenses. The company’s investor calendar also lists CEMIG Day for November 25, 2026, providing another scheduled update on strategy and capital allocation. CEMIG investor relations