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

Otter Tail Corporation (NASDAQ:OTTR) announced a quarterly dividend on Thursday, January 8th. Stockholders of record on Friday, February 13th will be paid a dividend of 0.5775 per share by the utilities provider on Tuesday, March 10th. This represents a c) dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Friday, February 13th. This is a 10.0% increase from Otter Tail’s previous quarterly dividend of $0.53.

Otter Tail has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 12 consecutive years. 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

Shares of OTTR stock opened at $84.08 on Friday. The firm has a market capitalization of $3.52 billion, a PE ratio of 12.68 and a beta of 0.56. The company has a 50 day moving average price of $82.53 and a 200-day moving average price of $80.99. Otter Tail has a 52 week low of $71.66 and a 52 week high of $86.48. The company has a quick ratio of 2.82, a current ratio of 3.57 and a debt-to-equity ratio of 0.57.

Otter Tail (NASDAQ:OTTR) last issued its earnings results on Tuesday, November 4th. The utilities provider reported $1.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.80 by $0.06. The company had revenue of $325.56 million for the quarter, compared to analysts’ expectations of $337.40 million. Otter Tail had a net margin of 21.48% and a return on equity of 15.96%. The firm’s quarterly revenue was down 3.7% on a year-over-year basis. During the same quarter last year, the company posted $2.03 earnings per share. As a group, equities research analysts expect that Otter Tail will post 5.88 earnings per share 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.