ST. LOUIS, Oct. 22 /PRNewswire-FirstCall/ -- The board of directors of Peabody Energy (NYSE: BTU) today approved a 17 percent increase in the regular quarterly dividend on common stock, to $0.07 per share. The increased dividend is payable on Nov. 27, 2009, to holders of record on Nov. 5, 2009.

"Peabody Energy has record cash flows and liquidity and is fully capable of satisfying our capital investments and organic growth as we expand to serve growth markets," said Peabody Chairman and Chief Executive Officer Gregory H. Boyce. "Earlier this year, BTU was ranked among the top 20 U.S. companies for total shareholder return over the past five years. We are pleased to be able to further enhance shareholders' returns with this dividend increase."

The increase marks the fifth time the company has raised its dividend since its May 2001 initial public offering.

Peabody Energy is the world's largest private-sector coal company, with 2008 sales of 255 million tons and $6.6 billion in revenues. Its coal products fuel 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity.

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SOURCE Peabody Energy