Otter Tail dividend yield – Otter Tail Corporation Announces Quarterly Dividend

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Otter Tail ($NASDAQ:OTTR) Corporation is a diversified manufacturing company headquartered in Minnesota. The company’s operations include electric and gas utilities, renewable energy, plastics, electronics, and agriculture. The company has declared a quarterly dividend of $0.4125 per share, payable December 9, 2020, to shareholders of record at the close of business on November 15, 2020. The company’s shares will trade ex-dividend on November 14, 2020. Otter Tail Corporation has a long history of paying dividends to shareholders.

The company has increased its dividend payout for each of the last 10 years. Otter Tail Corporation’s dividend yield is currently 3.4%. The company’s strong financial position and diversified business operations provide it with the ability to continue paying dividends to shareholders even during periods of economic uncertainty.

Dividends – Otter Tail dividend yield

With a current dividend yield of 3.4%, Otter Tail is one of the higher-yielding dividend stocks in the market. And its dividend yields have been consistently above 3% over the past few years – 3.08% in 2020 and 2.57% in 2021. Moreover, Otter Tail has a strong history of dividend growth.

This indicates that the company is committed to growing its dividend at a healthy pace, which is good news for income investors. All things considered, Otter Tail looks like a attractive option for investors seeking dividend income.

Market Price

OTTER TAIL stock opened at $56.8 on Friday and closed at $54.8, down by 3.0% from its previous closing price of $56.5. This decline can likely be attributed to the announcement of the dividend, as investors may be selling off the stock in order to receive the dividend.

VI Analysis

Investors interested in companies with strong fundamentals and long-term potential may be interested in Otter Tail Corporation. The company has a strong dividend history and is expected to continue to grow at a moderate pace. Additionally, Otter Tail has a strong balance sheet with little debt and is capable of weathering any economic downturn. Finally, Otter Tail is classified as a “gorilla” company, meaning it has a strong competitive advantage and is expected to continue to perform well in the future.

VI Peers

In the electric utility industry, there is intense competition between Otter Tail Corp and its competitors: NextEra Energy Inc, DTE Energy Co, Exelon Corp. These companies are all vying for market share in the electric utility industry.

– NextEra Energy Inc ($NYSE:NEE)

NextEra Energy Inc is a clean energy company with a market cap of 156.59B as of 2022. The company has a Return on Equity of 6.09%. NextEra Energy Inc is the world’s largest generator of renewable energy from the wind and sun. The company also owns Florida Power & Light Company, one of the nation’s largest electric utilities.

– DTE Energy Co ($NYSE:DTE)

DTE Energy Co is a publicly traded energy company headquartered in Detroit, Michigan. The company is involved in the generation, transmission, and distribution of electricity and natural gas. As of 2022, the company had a market capitalization of 21.77 billion dollars and a return on equity of 12.47%. The company is the largest provider of electricity and natural gas in Michigan, serving over 3 million customers.

– Exelon Corp ($NASDAQ:EXC)

Exelon Corp is a publicly traded company with a market capitalization of $36.95 billion as of 2022. The company has a return on equity of 11.0%. Exelon Corp is engaged in the generation, transmission, and distribution of electricity and natural gas. The company operates through four business segments: Exelon Generation, Exelon Utilities, Exelon Business Services, and Exelon Transmission.

Summary

Otter Tail Corporation is a diversified holding company with operations in various industries, including electric and natural gas utilities, wind and solar energy, manufacturing, plastics, agribusiness, and healthcare. The company’s electric and natural gas utilities serve customers in Minnesota, North Dakota, and South Dakota. Its wind and solar energy operations are located in the United States, Canada, and Mexico. The company’s manufacturing operations include plastics, metal fabrication, and electronics.

Its agribusiness operations are located in the United States and Canada. Lastly, its healthcare operations are located in the United States.