Otter Tail Corp raises dividend 10 percent, signaling financial strength

Otter Tail Corporation, headquartered in Fergus Falls, announced on Jan. 8 that its board increased the quarterly common stock dividend to $0.5775 per share, a 10 percent hike that brings the annual indicated dividend to $2.31 per share — $0.21 higher than the 2025 rate. The company said the first-quarter dividend will be payable March 10, 2026, to shareholders of record on Feb. 13, 2026.

The move extends a long tradition of shareholder payouts: 2026 will mark the 88th consecutive year Otter Tail has paid dividends on its common stock. For local investors and county residents who own shares directly or through retirement accounts, the boost means a predictable increase in income this year. The timing is relevant for anyone planning dividend capture strategies, since eligibility requires being on the Feb. 13 record.

As a vertically integrated business with both electric utility and manufacturing operations, Otter Tail’s ability to lift its payout reflects steady cash generation from regulated utility revenues and diversified manufacturing income. In practical terms for Otter Tail County, a company retaining headquarters in Fergus Falls and operating regional infrastructure, a sustained dividend track record supports perceptions of corporate stability that can influence local hiring, supplier relationships, and municipal tax receipts.

From a market perspective, raising the dividend serves several functions. It rewards existing shareholders with higher cash returns, can attract income-focused investors, and signals management confidence in near-term cash flows. At the same time, higher dividends allocate more free cash to shareholders rather than reinvestment, a trade-off that investors and policymakers monitor—especially as utilities face capital demands tied to grid modernization and energy transition initiatives.

Local stakeholders should note the payout schedule and consider how increased dividend income interacts with personal tax situations and retirement planning. For community leaders and local lenders, the announcement is a data point indicating Otter Tail’s ongoing financial health, but it is not a substitute for watching future earnings reports and regulatory decisions that could affect rates and capital spending.

The dividend increase is a clear vote of confidence from Otter Tail’s board in the company’s current finances. For Fergus Falls and Otter Tail County residents, it means slightly more cash flowing to shareholders this spring and a continued signal that the region’s largest locally headquartered energy company is maintaining steady returns as it navigates a changing energy landscape.