Otter Tail Corporation (NASDAQ:OTTR) to Issue Quarterly Dividend of $0.58

Key Points

• Otter Tail declared a quarterly dividend of $0.5775 per share, payable December 10 to shareholders of record on November 13. The annualized dividend is $2.31 per share, yielding approximately 2.5%.
• The company has increased its dividend for 12 consecutive years, with a current payout ratio of 42.2%, indicating coverage by earnings.
• Otter Tail’s latest quarterly results fell short of estimates: earnings were $1.41 per share versus $1.55 expected, while revenue declined 1.6% year over year to $320.51 million.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) announced a quarterly dividend on Monday, November 2nd. Stockholders of record on Friday, November 13th will be paid a dividend of $0.5775 per share by the utilities provider on Thursday, December 10th. This represents a $2.31 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, November 13th.

Otter Tail has raised its dividend payment by an average of 0.1% annually over the last three years and has increased its dividend annually for the last 12 consecutive years. Otter Tail has a dividend payout ratio of 42.2% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Otter Tail to earn $4.38 per share next year, which means the company should continue to be able to cover its $2.31 annual dividend with an expected future payout ratio of 52.7%.

Otter Tail Trading Up 1.3%

Shares of NASDAQ:OTTR opened at $91.51 on Tuesday. Otter Tail has a 52-week low of $74.15 and a 52-week high of $95.09. The company has a market capitalization of $3.84 billion, a P/E ratio of 19.72 and a beta of 0.42. The company has a 50-day simple moving average of $89.42 and a 200 day simple moving average of $88.81. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.36 and a current ratio of 1.71.

Otter Tail (NASDAQ:OTTR - Get Free Report) last announced its quarterly earnings results on Monday, November 2nd. The utilities provider reported $1.41 earnings per share for the quarter, missing analysts' consensus estimates of $1.55 by ($0.14). Otter Tail had a return on equity of 14.56% and a net margin of 14.83%. The business had revenue of $320.51 million for the quarter, compared to analyst estimates of $327.87 million. During the same period last year, the firm earned $1.86 EPS. Otter Tail's quarterly revenue was down 1.6% compared to the same quarter last year. Sell-side analysts forecast that Otter Tail will post 5.96 earnings per share for the current year.

About Otter Tail

Otter Tail Corporation is a diversified company headquartered in Fergus Falls, Minnesota. Through its electric utility subsidiary, Otter Tail Power Company, it generates, transmits and distributes electricity to residential, commercial, industrial and agricultural customers.

Otter Tail Power Company serves customers across portions of western Minnesota, eastern North Dakota and northeastern South Dakota. Its generation portfolio includes coal, natural gas, wind and other energy resources, supporting the company's role as a regional provider of electric power and related utility services.

Beyond its utility operations, Otter Tail Corporation owns manufacturing businesses that produce fabricated metal components, plastic products and other specialized goods.

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