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

Otter Tail Corporation (NASDAQ:OTTR) declared a quarterly dividend on Monday, August 3rd. Investors 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 of this dividend is Friday, August 14th.

Otter Tail has raised its dividend by an average of 0.1%annually 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 42.2% indicating that its dividend is sufficiently covered by earnings. Equities research 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 Trading Up 2.0%

NASDAQ:OTTR opened at $90.16 on Tuesday. The company has a market cap of $3.79 billion, a P/E ratio of 13.52 and a beta of 0.45. Otter Tail has a twelve month low of $74.15 and a twelve month high of $95.00. The business has a 50 day moving average price of $89.34 and a two-hundred day moving average price of $88.21. The company has a quick ratio of 1.64, a current ratio of 2.04 and a debt-to-equity ratio of 0.56.

Otter Tail (NASDAQ:OTTR) last posted its quarterly earnings data on Monday, August 3rd. The utilities provider reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.51 by $0.15. The company had revenue of $334.38 million for 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%. The firm’s revenue was up .4% compared to the same quarter last year. During the same period last year, the company earned $1.85 earnings per share. Otter Tail has set its FY 2026 guidance at 5.680-6.080 EPS. As a group, analysts expect that Otter Tail will post 5.54 EPS for the current fiscal year.

Wall Street Analyst Weigh In

OTTR has been the topic of several recent research reports. Zacks Research lowered shares of Otter Tail from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, May 27th. KeyCorp restated a “sector weight” rating on shares of Otter Tail in a research note on Monday, June 1st. Siebert Williams Shank cut Otter Tail from a “buy” rating to a “hold” rating and set a $86.00 price objective for the company. in a report on Wednesday, May 6th. UBS Group restated a “reduce” rating on shares of Otter Tail in a report on Friday, May 29th. Finally, Weiss Ratings raised shares of Otter Tail from a “hold (c)” rating to a “buy (b-)” rating in a research report on Monday, May 11th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Otter Tail presently has an average rating of “Hold” and an average target price of $86.00.

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.