RAPID CITY – Black Hills Corp (NYSE:), a utility company based in South Dakota with a market cap of $4.12 billion, has announced a quarterly dividend increase to $0.676 per share, an increase from the prior rate of $0.65. Shareholders recorded as of February 18, 2025, will qualify for the dividend, which will be paid on March 1, 2025. This new dividend offers a notable yield of 4.54%. Per InvestingPro data, Black Hills has a remarkable track record of maintaining and increasing its dividends for 54 consecutive years.
This dividend increase reflects the company’s confidence in its strategic direction and growth potential, bolstered by its strong financial health, as indicated by InvestingPro’s scoring. Linn Evans, President and CEO of Black Hills Corp., expressed optimism regarding the company’s team and long-term plans. This dividend rise marks the 55th straight year of annual increases, a record that is among the longest in the electric utility sector. InvestingPro subscribers can access detailed insights regarding BKH’s financial robustness and growth outlook through in-depth Pro Research Reports.
Black Hills Corp. has consistently paid dividends since February 1942, when its predecessor, Black Hills Power & Light Company, was founded. This long-standing tradition highlights the company’s dedication to delivering value to its shareholders.
With approximately 1.34 million customers across eight states—including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming—Black Hills Corp. is committed to customer-focused growth and aims to be a go-to energy partner.
The content of this article is derived from a press release by Black Hills Corp.
In other news, Black Hills Corp reported a decline in Q3 2024 earnings per share (EPS) to $0.35, down from $0.67 in the same period last year, largely due to increased operating costs and unplanned outages. However, the company still saw a year-to-date EPS rise of 4% to $0.57, attributed to rate hikes and customer expansion. Black Hills Corp remains on track with its $800 million capital investment for 2024, part of a larger five-year plan worth $4.3 billion.
Mizuho (NYSE:) has updated the company’s price target to $64 and maintained a neutral rating, in line with current market valuations. The company’s shares are trading at approximately a 13% price-to-earnings (P/E) discount compared to industry counterparts, with a current P/E ratio of 17.12.
Additional developments include the Colorado PUC approving utility-owned solar and battery storage projects, along with plans for a new gas generation facility in South Dakota. Anticipated regulatory approvals in Arkansas and an upcoming settlement in Iowa are expected to boost revenues.
Black Hills Corp projects a 4% to 6% growth in earnings for the year and aims to maintain a BBB+ credit quality target. The company is also planning to refinance $300 million in debt maturing in early 2026.
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