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

Key Points

• Otter Tail declared a quarterly dividend of $0.5775 per share, payable September 10 to shareholders of record as of August 14, representing an annualized yield of approximately 2.6%. The company has raised its dividend for 12 consecutive years, with a 42.2% payout ratio.
• Otter Tail reported quarterly EPS of $1.66, beating analysts’ $1.51 estimate, while revenue reached $334.38 million versus the $326.13 million consensus.
• Analyst sentiment remains mixed, with one Buy, three Hold and one Sell rating; the stock carries an average “Hold” rating and an $86 price target, below its reported opening price of $90.16.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) announced a quarterly dividend on Monday, August 3rd. Shareholders of record on Friday, August 14th will be paid a dividend of 0.5775 per share by the utilities provider on Thursday, September 10th. This represents a c) dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Friday, August 14th.

Otter Tail has increased its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 12 consecutive years. Otter Tail has a payout ratio of 42.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Otter Tail to earn $4.72 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 48.9%.

Otter Tail Stock Up 2.0%

Otter Tail stock opened at $90.16 on Tuesday. The company has a debt-to-equity ratio of 0.56, a current ratio of 2.04 and a quick ratio of 1.64. The company's 50-day moving average is $89.34 and its 200-day moving average is $88.21. The firm has a market capitalization of $3.79 billion, a PE ratio of 13.52 and a beta of 0.45. Otter Tail has a fifty-two week low of $74.15 and a fifty-two week high of $95.00.

Otter Tail (NASDAQ:OTTR - Get Free Report) last issued its earnings results on Monday, August 3rd. The utilities provider reported $1.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.15. The business had revenue of $334.38 million during the quarter, compared to the consensus estimate of $326.13 million. Otter Tail had a net margin of 21.34% and a return on equity of 15.21%. Otter Tail's revenue was up .4% on a year-over-year basis. During the same period last year, the business posted $1.85 EPS. Otter Tail has set its FY 2026 guidance at 5.680-6.080 EPS. Sell-side analysts anticipate that Otter Tail will post 5.54 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on OTTR shares. Weiss Ratings raised Otter Tail from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, May 11th. UBS Group reiterated a "reduce" rating on shares of Otter Tail in a research note on Friday, May 29th. Zacks Research lowered shares of Otter Tail from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 27th. Siebert Williams Shank cut shares of Otter Tail from a "buy" rating to a "hold" rating and set a $86.00 target price on the stock. in a report on Wednesday, May 6th. Finally, KeyCorp reiterated a "sector weight" rating on shares of Otter Tail in a research note on Monday, June 1st. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $86.00.

Otter Tail Company Profile

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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