Otter Tail Corporation (NASDAQ:OTTR) Declares $0.58 Quarterly Dividend

Key Points

• Otter Tail declared a quarterly dividend of $0.5775 per share, payable June 10 to shareholders of record on May 15, implying an annual dividend of $2.31 and a yield of about 2.5%.
• The dividend appears sustainable: Otter Tail has raised its payout for 12 consecutive years, has a current payout ratio of 42.2%, and analysts' EPS forecasts imply a future payout ratio near 47.5%.
• Operationally the company beat expectations this quarter with $1.73 EPS vs. $1.42 expected and $347M in revenue vs. $339M expected, and it set FY2026 guidance of $5.22–$5.62 EPS (consensus ~ $5.48).

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) announced a quarterly dividend on Monday, May 4th. Stockholders of record on Friday, May 15th will be paid a dividend of 0.5775 per share by the utilities provider on Wednesday, June 10th. This represents a c) dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, May 15th.

Otter Tail has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 12 years. Otter Tail has a dividend payout ratio of 42.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Otter Tail to earn $4.86 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 47.5%.

Otter Tail Price Performance

Shares of OTTR opened at $90.59 on Tuesday. The firm has a market capitalization of $3.80 billion, a PE ratio of 13.81 and a beta of 0.47. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.28 and a quick ratio of 1.83. Otter Tail has a 1-year low of $73.74 and a 1-year high of $92.24. The company's fifty day moving average price is $87.49 and its 200-day moving average price is $84.89.

Otter Tail (NASDAQ:OTTR - Get Free Report) last announced its quarterly earnings data on Monday, May 4th. The utilities provider reported $1.73 earnings per share for the quarter, beating analysts' consensus estimates of $1.42 by $0.31. The firm had revenue of $347.03 million for the quarter, compared to analyst estimates of $339.10 million. Otter Tail had a net margin of 21.16% and a return on equity of 15.36%. The business's quarterly revenue was up 2.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.62 earnings per share. Otter Tail has set its FY 2026 guidance at 5.220-5.620 EPS. On average, equities research analysts predict that Otter Tail will post 5.48 EPS for the current year.

About Otter Tail

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company's service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

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