RAPID CITY – Black Hills Corp . (NYSE:), the South Dakota-based utility company with a market capitalization of $4.12 billion, has declared a quarterly dividend increase to $0.676 per share, up from the previous $0.65. Shareholders on record as of February 18, 2025, will be eligible for the dividend, which is scheduled for payment on March 1, 2025. The new dividend represents an attractive yield of 4.54%. According to InvestingPro data, Black Hills has consistently maintained and raised its dividend for 54 consecutive years.
The increase in the dividend reflects the company’s belief in its strategic direction and growth potential, supported by its GOOD financial health score from InvestingPro. Linn Evans, the President and CEO of Black Hills Corp., expressed confidence in the company’s team and long-term strategy. This dividend hike marks the 55th consecutive year of annual dividend increases for Black Hills, a record that stands as one of the longest in the electric and utility industry. InvestingPro subscribers have access to additional insights about BKH’s financial strength and growth prospects through comprehensive Pro Research Reports.
Black Hills Corp. has a history of consistent dividend payments dating back to February 1942, when its predecessor, Black Hills Power & Light Company, began operations. This tradition underscores the company’s commitment to providing value to its shareholders.
Serving approximately 1.34 million customers in eight states, including Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming, Black Hills Corp. focuses on customer-oriented growth and aims to be a preferred energy partner.
The information in this article is based on a press release statement from Black Hills Corp.
In other recent news, Black Hills Corp reported a decrease in Q3 2024 earnings per share (EPS) to $0.35 from $0.67 in the same quarter of the previous year, primarily due to higher operating costs and unplanned outages. Despite this, the company experienced a year-to-date EPS increase of 4% to $0.57, driven by rate increases and customer growth. Black Hills Corp is on track with its $800 million capital investment for 2024, as part of a five-year plan totaling $4.3 billion.
Mizuho (NYSE:) has revised the company’s price target to $64 and maintained a neutral rating, reflecting current market multiples. The company’s shares are trading at a roughly 13% price-to-earnings (P/E) discount compared to its industry peers, with a current P/E ratio of 17.12.
Further developments include the Colorado PUC’s authorization of utility-owned solar and battery storage, and a planned construction of a new gas generation plant in South Dakota. Regulatory approvals in Arkansas and a pending settlement in Iowa are expected to enhance revenues.
Black Hills Corp anticipates 4% to 6% growth in earnings for the current year and plans to maintain a BBB+ credit quality target. The company also plans to refinance $300 million maturing in early 2026.
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