IDACORP Hikes Dividend 2.3% to Strengthen Shareholder Returns
IDACORP Inc. IDA announced that its board of directors approved a 2.3% increase in the quarterly dividend. Following the hike, the quarterly dividend will rise to 90 cents per share, translating into an annualized dividend of $3.60. The company’s current dividend yield stands at 2.73%, higher than the Zacks S&P 500 composite yield of 1.44%.
IDACORP has maintained a consistent track record of rewarding shareholders through annual dividend increases. The company has raised dividend every year since 2011, placing it among a select group of companies with a long-standing history of dividend growth. The latest increase takes the cumulative rise in IDACORP’s annualized dividend since 2011 to nearly 200%.
Through steady annual dividend increases, management aims to keep IDACORP’s dividend payout within its targeted range of 50% to 60%, while continuing to provide attractive returns to shareholders.
Can IDACORP Sustain Dividend Hikes?
IDACORP’s regulated electric operations in Idaho provide a relatively stable earnings base. Improving economic conditions across its service territories are supporting steady customer growth, which, in turn, is contributing positively to the company’s operating income.
The company plans to invest nearly $7 billion during the 2026-2030 period, averaging approximately $1.42 billion annually. These systematic investments are aimed at strengthening generation capacity and infrastructure, enabling Idaho Power to reliably meet rising electricity demand from its expanding customer base.
IDACORP continues to pursue initiatives aimed at strengthening its financial position and enhancing core operations. Continued customer additions and the development of new facilities by large-load customers are expected to drive electricity demand. The company’s stable operating performance and expanding customer base should also support its ability to maintain consistent annual dividend growth.
Utilities Reward Shareholders With Dividend Hikes
The domestic focus, stable performers and regulated utilities continue to reward their shareholders through dividend hikes and repurchases. Like IDACORP, some other utilities also rewarded their shareholders with dividend hikes.
American Water Works (AWK), Duke Energy DUK and Essential Utilities WTRG already increased their annual dividend rates by 8.2%, 1.9% and 5.25%, respectively, in 2026.
The Zacks Consensus Estimate for AWK, DUK and WTRG’s 2026 EPS has moved up year-over-year by 7.98%, 6.5% and 0.5% respectively.
IDA's Price Movement
In the past year, IDACORP’s shares have underperformed the industry it belongs to.
Price performance (one year)
Image Source: Zacks Investment Research
IDA’s Zacks Rank
IDACORP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
