Otter Tail Corporation (NASDAQ:OTTR) Announces Quarterly Dividend of $0.53

Key Points

• Otter Tail Corporation has announced a quarterly dividend of $0.53 per share, with shareholders on record as of August 15th set to receive the payment on September 10th, representing a yield of 2.7%.
• The company reported earnings of $1.85 per share for the last quarter, exceeding analysts' expectations, but experienced a revenue decline of 2.7% year-over-year.
• Otter Tail has a debt-to-equity ratio of 0.58 and a dividend payout ratio of 38.3%, indicating strong earnings coverage for its dividend commitments.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) announced a quarterly dividend on Wednesday, August 6th, Wall Street Journal reports. Shareholders of record on Friday, August 15th will be given a dividend of 0.525 per share by the utilities provider on Wednesday, September 10th. This represents a c) dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, August 15th.

Otter Tail has a dividend payout ratio of 38.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Otter Tail to earn $3.56 per share next year, which means the company should continue to be able to cover its $2.10 annual dividend with an expected future payout ratio of 59.0%.

Otter Tail Stock Performance

NASDAQ:OTTR traded down $2.37 during trading hours on Wednesday, reaching $78.57. The stock had a trading volume of 248,660 shares, compared to its average volume of 239,035. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.03 and a current ratio of 2.62. The stock has a 50 day simple moving average of $77.86 and a 200 day simple moving average of $78.73. Otter Tail has a 12-month low of $71.66 and a 12-month high of $92.99. The stock has a market cap of $3.29 billion, a P/E ratio of 11.55 and a beta of 0.56.

Otter Tail (NASDAQ:OTTR - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The utilities provider reported $1.85 EPS for the quarter, topping analysts' consensus estimates of $1.74 by $0.11. The firm had revenue of $333.04 million during the quarter, compared to analyst estimates of $329.60 million. Otter Tail had a return on equity of 17.10% and a net margin of 21.82%. The business's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period last year, the company earned $2.07 earnings per share. On average, research analysts forecast that Otter Tail will post 5.88 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Charles Schwab Investment Management Inc. boosted its position in shares of Otter Tail by 2.8% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 551,338 shares of the utilities provider's stock worth $44,311,000 after purchasing an additional 14,793 shares in the last quarter. Northern Trust Corp lifted its position in Otter Tail by 15.1% in the 4th quarter. Northern Trust Corp now owns 545,618 shares of the utilities provider's stock valued at $40,288,000 after acquiring an additional 71,601 shares in the last quarter. Millennium Management LLC lifted its position in Otter Tail by 13.5% in the 4th quarter. Millennium Management LLC now owns 411,281 shares of the utilities provider's stock valued at $30,369,000 after acquiring an additional 48,888 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec raised its stake in Otter Tail by 82.2% during the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 406,321 shares of the utilities provider's stock valued at $32,656,000 after buying an additional 183,316 shares during the last quarter. Finally, Invesco Ltd. raised its stake in Otter Tail by 9.8% during the 1st quarter. Invesco Ltd. now owns 319,907 shares of the utilities provider's stock valued at $25,711,000 after buying an additional 28,563 shares during the last quarter. Hedge funds and other institutional investors own 61.32% of the company's stock.

Otter Tail Company Profile

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets.

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