IDACORP Boosts Quarterly Dividend to $0.86, Signaling Growth

IDACORP Increases Quarterly Dividend to $0.86

In a significant move for investors, IDACORP, Inc. (NYSE: IDA) has announced that its Board of Directors has approved an increase in the regular quarterly cash dividend. Effective immediately, the new dividend is set at $0.86 per share. This change signifies an annualized indicated dividend of $3.44 per share, reflecting the company's dedication to rewarding its shareholders.

Growth Through Consistent Dividend Increases

Lisa Grow, the President and Chief Executive Officer of IDACORP, highlighted an impressive trend during a recent announcement. "IDACORP’s Board of Directors has approved a dividend increase every year since 2011. This has resulted in a cumulative increase of 187%, alongside a compound annual growth rate of 7.8% during this time," she shared enthusiastically.

Strategic Investment Plans

With the surge in customer demand and load growth at Idaho Power, IDACORP is facing an increased need for capital expenditure. This need reinforces their commitment to reinvesting in growth while being mindful of managing equity dilution. Grow anticipates an evolving approach to dividend and earnings per share growth rates. "As we reinvest and focus on growing our company, we expect to decouple our dividend and earnings per share growth rates," she stated.

Long-Term Commitment to Dividend Growth

Looking to the future, IDACORP is dedicated to a targeted dividend payout ratio of 60% to 70% of sustainable earnings. However, Grow also pointed out that the actual payout ratio could be lower in the near term, reflecting the company’s strategic focus on growth and investment.

Factors Influencing Dividend Decisions

The decision to declare dividend payments ultimately lies with the Board of Directors. They evaluate various factors every time a dividend action is considered. This includes the projected capital needs of the company, its liquidity position, overall financial health, competitive dividend yield, economic conditions, potential impacts on credit ratings, and other relevant elements.

About IDACORP, Inc.

IDACORP, Inc. (NYSE: IDA) is based in Boise, Idaho, and has a rich history since its inception in 1998. The holding company comprises Idaho Power, which operates as a regulated electric utility, along with IDACORP Financial, an investor in affordable housing and real estate. Additionally, Ida-West Energy operates small hydroelectric generation projects under the guidelines of the Public Utility Regulatory Policies Act of 1978.

The Legacy of Idaho Power

Idaho Power has proudly operated since 1916, seeking to deliver reliable energy at competitive prices. Currently, the company serves a vast 24,000-square-mile area across Idaho and Oregon. The company is on a mission to provide 100% clean energy by 2045, highlighting its ongoing commitment to sustainability and leadership in clean-energy initiatives. With 17 low-cost hydropower projects at the core of its operations, Idaho Power ensures that its residential, business, and agricultural customers benefit from some of the lowest electricity prices in the nation.

Committed Workforce

With a dedicated workforce of 2,100 employees, IDACORP aims to uphold a culture focused on safety, integrity, and respect. The company's emphasis on these values has contributed to its robust service model, allowing it to cater effectively to over 640,000 customers.

Frequently Asked Questions

What is the new quarterly dividend amount for IDACORP?

The new quarterly cash dividend for IDACORP is $0.86 per share.

How long has IDACORP been increasing its dividend?

IDACORP has consistently increased its dividend every year since 2011.

What is the expected annualized dividend based on the new rate?

The indicated annual dividend is expected to be $3.44 per share.

What key factors does the Board consider for future dividends?

The Board considers projected capital requirements, liquidity position, competitive yield, and overall economic conditions.

What is Idaho Power's mission regarding clean energy?

Idaho Power aims to provide 100% clean energy by 2045, underscoring its commitment to sustainable energy practices.

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