2024-01-31 14:42:38 ET
Summary
- Black Hills Corporation is a Dividend King utility trading 40% off its highs.
- The near 5% dividend and 5% per year dividend growth rate- CAGR- make it an excellent alternative to long-term bonds.
- The "social compact" between utilities and local governments makes these companies a stable cash flowing, regulated industry.
- The company is finally trading below its 10-year dividend growth rate as rising rates crushed then low [now better] yielding Dividend Kings and Aristocrats.
A Dividend King Trading at a discount to its per share dividend growth rate
Seeking high-yield alternatives before the Fed moves to lower interest rates, many investors are looking to the beaten-down Utilities sector. While this is a sector that operates heavily on debt and share dilution, their cash flow streams are maybe second only to taxes as far as the reliability of income is concerned. There are only a handful of Utility companies that are in the Dividend King category, with dividend growth of 50 years or more. Black Hills Corporation ( BKH ) is one of those....
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Black Hills Corporation: Dividend King, Decade High Yield Near 5%