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.
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).
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 $1.19 for many years before it recently started to increase it modestly. We feel OTTR’s overall stock fundamentals are subpar. We have given them a rating of “D” (i.e. poor or below average). In our opinion OTTR is not one of the top dividend paying stocks.
Stat Sheet – Magellan Midstream Partners 4/8/16
|Market Cap||$ 1,064|
|Growth Prospects||Below Average|
|Price Volatility||Below Average|
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