Quanta Services Inc. /zigman2/quotes/203420082/composite PWR +0.87% said Friday it was initiating a quarterly cash dividend of 4 cents a share. The provider of contracting services for the electric power, oil and cash and communications industries said the new dividend will be payable Jan. 16 to shareholders of record on Jan. 2. Based on Thursday's stock closing price of $32.65, the new annual dividend rate implies a dividend yield of 0.49%. That compares with the implied yield for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.48% of 2.06%, according to FactSet. "Our decision to initiate a dividend demonstrates our continued confidence in the stability of Quanta's base business, long-term growth prospects, solid financial position and commitment to enhancing stockholder value," said Chief Executive Duke Austin. "The planned dividend is a meaningful milestone in Quanta's history and complements our stock repurchase activity." The stock, which was still inactive in premarket trade, has shed 16.5% year to date, while the S&P 500 has gained 0.8%.