Highest Paying Dividend Stocks – In Focus OTTR

Otter Tail (OTTR) is one of the highest paying dividend stocks available. But is it one of the best dividend paying stocks? We will answer that question in this report.

Background

Otter Tail Corporation is somewhat unique. It is an electric utility that also has significant manufacturing and other business segments. Its electric utility business, Otter Tail Power Company, is headquartered in Fergus Falls, Minnesota. Otter Tail Power serves mainly Minnesota, North Dakota, and a small region of South Dakota.

Its non-utility businesses include BTD (metal fabrication), T.O. Plastics (thermoformed plastic products), Northern Pipe Products (PVC Pipe), and Vinyltech (PVC, Pipe).

Stock Fundamentals

We are usually not fans of “diversified” companies. And OTTR is not an exception to that rule. OTTR performance over the previous business cycle (7 – 8 years) has been lackluster. Sales per share and equity per share are actually lower than they were 7 – 8 years ago. And profitability is not much higher.

Its balance sheet is not in particularly strong shape. And though OTTR has not cut its dividend recently, its dividend was stagnant at $1.19 for many years before it recently started to increase it modestly. We feel OTTR’s overall stock fundamentals are subpar. We have given them a rating of “D” (i.e. poor or below average). In our opinion OTTR is not one of the top dividend paying stocks.

Stat Sheet – Magellan Midstream Partners 4/8/16

  Information
Ticker OTTR
Industry Electric Utilities
Price $ 28.31
Market Cap  $ 1,064
Dividend Yield 4.42
Dividend/CFOp 0.341
Equity/Assets 0.322
Average Equity/Assets 0.346
Financial Strength Average
Growth Prospects Below Average
Beta 0.75
Price Volatility Below Average
Stock Fundamentals D

If you would like to seem stocks that are the top dividend paying stocks and stocks that have other characteristics we feel are beneficial, click the ling below.

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Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information

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Highest Paying Dividend Stocks – In Focus OTTR

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