Otter Tail Corporation: Diversifying With Diversification
- Otter Tail Corporation is a diversified utility. Its electrical segment supports its dividend payments while its manufacturing and infrastructure segments offer earnings growth potential.
- Otter Tail has paid a dividend since 1938. From 1975 to 2008, it increased the dividend annually. With the onset of the financial crisis, dividend bumps were put on hold.
- Otter Tail is positioned to grow earnings from recent investments as well as cap-ex plans in its manufacturing and infrastructure segments. As earnings grow, its share price should naturally increase.
Here's Why I'm Staying Long On Shares Of Otter Tail Corporation
- Shares of Otter Tail Corporation currently offer investors a dividend yield of just under 4.4%.
- Otter Tail Corporation has now distributed its regular quarterly dividend to its shareholders without interruption since 1938. That's a total of 303 consecutive quarters for those who are counting.
- Continued increases in Otter Tail's segment-based revenue generation should play a key role in the company's efforts to exceed its recently revised full year earnings outlook.
Dec. 2, 2013, 3:09 PM
Aug. 6, 2013, 11:57 AM
- Otter Tail Corporation (OTTR -4.5%) slides after its Q2 misses on all fronts.
- Electric revenues were $82.9M, compared with $79M for the prior year period.
- Electric retail revenues increased $3.5M, as a result of higher Transmission Cost Recovery Rider revenues and an increase in retail kilowatt-hour sales resulting from colder spring weather in 2013 compared with 2012, as heating-degree days were up 70.3% between the quarters
- For 2013, the company is narrowing its EPS guidance from continuing operations to $1.30 - $1.50 from its previous guidance of $1.30 - $1.55.
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