Dynegy Suspends Dividend Indefinitely

Dynegy Inc. said it would not pay dividends in the third quarter and has no plans to reinstate them “in the near term.”

The Houston-based energy marketer said in a filing with the Securities and Exchange Commission that its board of directors elected to suspend dividends to focus on the company’s plan to raise $2 billion to strengthen finances and improve its image on Wall Street.

Dynegy said when the plan was unveiled in June that dividends would be cut in half.

Dynegy shares dropped 19 cents, or 10.8%, to $1.57 on the NYSE.