IDACORP (IDA): A Dividend Machine Poised for Long-Term Growth
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Intro
💡 Invest in companies you believe in - W. Buffett
Identifying strong dividend stocks in the utility sector may seem challenging, but companies like IDACORP Inc. (NYSE: IDA) show it's more than achievable. With steady financial growth, a reliable dividend history, and efficient management, IDACORP has positioned itself as a compelling option for investors looking for both stability and consistent returns.
History of the Company
IDACORP, Inc., the parent company of Idaho Power Company, traces its origins back to 1916 when Idaho Power was first established to serve the growing electricity needs of southern Idaho. Over the decades, Idaho Power expanded its operations, adapting to the region's increasing energy demands.
In the mid-20th century, Idaho Power played a pivotal role in the electrification of rural communities in southern Idaho and eastern Oregon, contributing to regional economic development. The construction of major hydropower facilities, including the landmark Brownlee, Oxbow, and Hells Canyon dams on the Snake River in the 1950s and 1960s, marked a significant milestone in the company’s history. These projects not only provided a reliable source of renewable energy but also showcased Idaho Power’s engineering expertise and commitment to serving its customers.
In 1998, IDACORP was formed as the parent holding company, providing strategic direction and enabling broader investments in energy solutions. Today, with over a century of service, the company remains a leader in the utility sector, committed to innovation, reliability, and sustainability.
A Proven Dividend Champion!
IDACORP Inc. is a dividend king, showcasing high stability and profitability. The company boasts a strong safety rating, consistently growing its revenue and operating profit. It is efficiently managed, maintaining steady growth and attracting investors with its robust dividend policy.
The current dividend yield stands at 3.08%, with a five-year average dividend growth rate of 31%. IDACORP Inc. is an excellent choice for long-term investments, backed by strong financial performance and reliable returns.
Key Institutional Investors in IDACORP Inc. (NYSE: IDA)
As of 2024, major institutional investors hold substantial stakes in IDACORP, Inc., significantly impacting its market performance and strategic decisions.
The Vanguard Group holds 12% of shares, reducing its position by 1.5% in the latest quarter.
BlackRock, Inc. controls 11%, with a 1.2% decrease in holdings.
State Street Corporation owns 8.5% of shares, lowering its stake by 0.8% during the same period.
What Makes IDACORP Inc. Stand Out?
IDACORP Inc. (NYSE: IDA)
Financial Score: 95 / 99 ⭐️⭐️⭐️⭐️⭐️
Industry: Utilities - Regulated Electric
Dividend increase - 13 Years
👉 Learn more about Financial Score
IDACORP, Inc. stands out for several key reasons that make it an attractive investment and a strong player in the utilities sector:
Strong Market Position: As a leading utility provider in Idaho and parts of Oregon, IDACORP benefits from a stable and regulated market. Its solid customer base, including over 633,000 retail customers, ensures consistent demand for its services, making it a reliable company for long-term investment.
Consistent Financial Performance: IDACORP has demonstrated steady growth in revenue and profitability. The company has shown a positive trend in earnings per share (EPS), which reflects its strong operational performance and effective management.
Dividend Reliability: The company offers a consistent dividend yield, which is particularly appealing to income-focused investors. IDACORP has a history of regularly increasing its dividend payouts, demonstrating its commitment to delivering value to shareholders. In 2024, its annual dividend reached $2.49 per share.
IDACORP Inc - Quick MaxDividends Team Overview
🟢 Analysis of recent reports shows that the company is currently profitable.
🟢 The company's sales are growing steadily, which contributes to its good prospects
🟢 Growing operating profit over recent years is a good indicator of the effective management of the company in recent years.
🟢 The dynamics of earnings per share are positive, the company shows good pace and stability in terms of profitability
🟢 The company is effectively managed, maintains stable income and demonstrates high sustainability.Financial Statement
If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.
Here is a quick dive into IDACORP Inc financials over last years
The strongest and most stable companies tend to have a Financial Score of 80+, with the very best ones hitting 90+. If you see that score start to dip below 80, that’s your cue to consider jumping ship before things get worse.
👉 Learn More about Financial Score
Our Paid Members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis. Companies like IDACORP Inc are on that list, too.
Future Growth Prospects for IDACORP, Inc. (IDA)
IDACORP, Inc. has strong growth prospects driven by investments in renewable energy projects, including solar and wind, which enhance its energy portfolio and reduce costs. The company is expanding its market by targeting underserved areas and pursuing strategic acquisitions of smaller utilities to boost revenues and achieve synergies.
Revenue is projected to grow at an average annual rate of 5%, increasing from $1.4 billion in 2024 to $1.5 billion in 2026, with net income rising from $251 million to $300 million over the same period. Partnerships in renewable energy are expected to add 500 MW of capacity by 2026, while investments in smart grid technology will improve operational efficiency and customer service. Key competitive advantages include regulatory support, a strong financial position ($9.1 billion in assets and $3.3 billion in equity as of September 2024), and a growing customer base, which increased by 16,500 (2.6%) year-over-year.
Recent IDACORP Financial Performance (2024)
For the third quarter of 2024, IDACORP reported revenues of $528.5 million, compared to $510.9 million in Q3 2023, reflecting a year-over-year increase. The net income attributable to IDACORP, Inc. for the same period was $113.6 million, up from $106.0 million in the previous year.
IDACORP has committed over $1.3 billion from 2024 to 2027 for resource additions aimed at addressing projected energy and capacity deficits. This includes significant projects such as the Boardman-to-Hemingway transmission line, which is expected to enhance electricity transmission capabilities across its service area.
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Competitors
1. OGE Energy Corporation (NASDAQ: OGE)
Financial Score: 82 / 99
Industry: Utilities - Regulated Electric
Dividend increase - 18 Years
OGE Energy Corporation is a prominent energy services provider based in Oklahoma City, Oklahoma. Founded in 1902, the company operates in the utilities sector, focusing on the generation, transmission, and distribution of electric energy. It serves approximately 896,000 customers across 30,000 square miles in Oklahoma and western Arkansas, with energy production from coal, natural gas, wind, and solar sources.
With a market capitalization of over $8.2 billion, OGE Energy has demonstrated consistent growth, with positive sales dynamics and a solid operating profit. The company maintains a stable financial outlook, underpinned by strong earnings per share and increasing revenue. OGE Energy's current price stands at $43.36, with a dividend yield of 3.88%. It has shown a 32.44% growth over the past 12 months.
2. Portland General Electric Co. (NYSE: POR)
Financial Score: 85 / 99
Industry: Utilities - Regulated Electric
Portland General Electric Co. (PGE) is a leading integrated electric utility company headquartered in Portland, Oregon. Founded in 1889, PGE is engaged in the generation, transmission, distribution, and retail sale of electricity across Oregon. The company operates multiple thermal plants, wind farms, and hydroelectric facilities and serves approximately 934,000 customers in 51 cities.
With a market capitalization of $4.64 billion, PGE is recognized for its strong financial performance, boasting a Financial Score of 85 and a stable business trajectory. The company has shown consistent sales growth and profitability, with positive dynamics in earnings per share and operating profit. PGE's current price is $42.48, with a dividend yield of 4.71%. It has demonstrated impressive 5-year dividend growth (+30%) and offers a stable dividend policy with an 18-year consecutive dividend history.
Should We Buy IDACORP?
IDACORP, Inc. offers solid financial growth, a consistent dividend yield of 2.7%, and a stable market position as a leading utility provider in Idaho. With strong institutional backing and plans for future expansion, it’s an attractive option for long-term investors seeking stability and reliable returns.
Current Market Value
Undervalued \ Overvalued \ Fairly valued
Compare competitor companies` P/E ratios to find out if the stocks you`re looking to trade are overvalued. We take the P/E average among competitors.
If a company`s current P/E is 20% or more lower than its competitor`s average, the company is considered undervalued. If it is higher by 20% or more, it is overvalued.
P/E ratio is calculated by dividing the market value per share by the earnings per share (EPS).
🟠 Overvalued
Although this company is not in our current portfolio, we are keeping a close eye on it by putting it on our watch list.
Analysts Consensus
Analysts see a mixed picture: revenues are growing, but profits are lagging behind. EPS forecasts are unstable, although growth is expected for Q4.
Analysts believe the company is undervalued. But according to our metrics, the company is currently overvalued.
Final Thoughts
We think it's worth waiting for better conditions. It's a solid company, but it makes more sense to invest when its valuation is significantly lower compared to competitors or its own historical benchmarks.
For ourselves, we would consider 2 levels of purchase price to add this reliable dividend idea to our short list of buys for long-term investing today.
Level 1 is optimal: discount from the current price today is about 30%. That is, the price is ~ $75 per share.
Level 2 is desirable: discount from the current price is about 50-60%. That is, the price is ~ $55 per share.
Unlikely it can touch $55 price level near future, so possible to start hunting at ~ $70-75.
To your wealth, MaxDividends Team
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