The board of directors of electricity company
) has approved a 13.2% increase in the quarterly dividend. The
new quarterly dividend will be 43 cents. The revised dividend is
payable on Dec 2, 2013, to shareholders of record at the close of
business on Nov 6. The previous increase in the quarterly
dividend rate from 33 cents to 38 cents was made on Sep 20, 2012.
The new annualized dividend rate will come to $1.72, 20 cents,
higher than the previous annualized rate of $1.52 per share. The
current dividend yield of the company is 3.57%, which is
significantly higher than the industry yield of 2.03%. IdaCorp is
increasing its dividend at regular intervals and strives to
achieve a dividend payout ratio of 50% to 60%.
The Board of Directors is expected to increase the payout again
in excess of 5% in Sep 2014. This can only happen if the company
achieves certain specified conditions.
IdaCorp has been a consistent performer with its earnings
surpassing estimates in the last four quarters with an average
beat of 20.02%. The strong performance enables the company to
generate ample operating cash flow to reward its shareholders. In
the first half of 2013, IdaCorp's cash flow from operating
activities was $114.2 million out of which $38.3 million was used
for dividend payment.
IdaCorp is also making consistent investments to improve its
generation, transmission, and distribution facilities. We expect
these investments to increase reliability of its services and
help it to retain and attract new consumers. Incremental
cash flows will help fund the increased dividend payment.
IdaCorp, Inc. currently retains a Zacks Rank #2 (Buy). The
current dividend yield of the company exceeds that of other
utilities having a similar Zacks Rank of #2.
NV Energy, Inc.
PNM Resources, Inc.
) have a dividend yield of 3.46%, 3.22% and 2.94%,
IDACORP INC (IDA): Free Stock Analysis Report
NV ENERGY INC (NVE): Free Stock Analysis
NORTHWESTERN CP (NWE): Free Stock Analysis
PNM RESOURCES (PNM): Free Stock Analysis
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