Otter Tail (OTTR) Declares $0.44 Dividend
Otter Tail said on February 3, 2023 that its board of directors declared a regular quarterly dividend of $0.44 per share ($1.75 annualized). Shareholders of record as of February 13, 2023 will receive the payment on March 10, 2023. Previously, the company paid $0.41 per share.
At the current share price of $64.01 / share, the stock's dividend yield is 2.73%. Looking back five years and taking a sample every week, the average dividend yield has been 2.95%, the lowest has been 2.03%, and the highest has been 4.47%. The standard deviation of yields is 0.45 (n=236).
The current dividend yield is 0.49 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.25. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.18%, demonstrating that it has increased its dividend over time.
Analyst Price Forecast Suggests 7.83% Upside
As of February 12, 2023, the average one-year price target for Otter Tail is $69.02. The forecasts range from a low of $63.63 to a high of $78.75. The average price target represents an increase of 7.83% from its latest reported closing price of $64.01.
The projected annual revenue for Otter Tail is $1,290MM, a decrease of 13.54%. The projected annual EPS is $3.97, a decrease of 43.78%.
What is the Fund Sentiment?
There are 525 funds or institutions reporting positions in Otter Tail. This is a decrease of 1 owner(s) or 0.19% in the last quarter. Average portfolio weight of all funds dedicated to OTTR is 0.15%, a decrease of 8.32%. Total shares owned by institutions increased in the last three months by 3.57% to 24,499K shares. The put/call ratio of OTTR is 6.44, indicating a bearish outlook.
What are large shareholders doing?
First Trust Advisors holds 1,286K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 1,005K shares, representing an increase of 21.79%. The firm increased its portfolio allocation in OTTR by 11.75% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,220K shares representing 2.93% ownership of the company. In it's prior filing, the firm reported owning 1,233K shares, representing a decrease of 1.06%. The firm decreased its portfolio allocation in OTTR by 5.48% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 1,057K shares representing 2.54% ownership of the company. In it's prior filing, the firm reported owning 1,050K shares, representing an increase of 0.72%. The firm decreased its portfolio allocation in OTTR by 3.74% over the last quarter.
FVD - First Trust Value Line Dividend Index Fund holds 938K shares representing 2.25% ownership of the company. In it's prior filing, the firm reported owning 942K shares, representing a decrease of 0.42%. The firm decreased its portfolio allocation in OTTR by 2.48% over the last quarter.
IWM - iShares Russell 2000 ETF holds 895K shares representing 2.15% ownership of the company. In it's prior filing, the firm reported owning 926K shares, representing a decrease of 3.56%. The firm decreased its portfolio allocation in OTTR by 4.16% over the last quarter.
Otter Tail Background Information
(This description is provided by the company.)
Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses.
This story originally appeared on Fintel.