2024-07-11 07:30:00 ET
Summary
- Black Hills Corporation's 54-year dividend growth streak is a testament to the quality of its business.
- The electric and natural gas utility is targeting 4% to 6% annual EPS growth, which looks to be within reason.
- BKH's interest coverage ratio is very strong for a regulated utility.
- Shares of the electric and gas utility could be trading at an 18% discount to fair value.
- BKH appears poised to generate 46% cumulative total returns through 2026.
In dividend growth investing, I believe that finding companies to stand the test of time is key to success. This is what makes utilities one of my favorite sectors to cover.
Demand for utility services like electricity, water, and natural gas, almost certainly isn't going to be going anywhere. To the contrary, it's difficult to imagine a reality in which customers don't consume more of these resources over time....
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Black Hills Corporation: The Time To Buy This Dividend King Is Now