Black Hills Corporation Dividend Analysis

Yes, Black Hills pays a regular dividend of about $2.76 per share per year (a yield of roughly 3.2%). That is a payout ratio of about 70.0% of earnings, so it is not currently covered by free cash flow. A low headline yield is not the same as a weak dividend: what matters is how well earnings and cash flow cover the payout, not the percentage alone. The full payout history and per-share figures are on this dividends tab.

Black Hills's dividend looks not currently covered by free cash flow, with free cash flow covering the payout about -1.5 times over. Intrinsiqq scores its dividend safety at 25 out of 100, weighing the payout ratio, free-cash-flow coverage and balance-sheet strength. Safety matters more than yield: a payout you can rely on beats a high one you cannot.

Black Hills has raised its dividend for at least 17 years in a row, the full span of the dividend history we hold. Over the past five years the dividend has grown at roughly 4.5% a year. Consistent growth is one of the strongest signals of a durable, shareholder-friendly business, so read the streak alongside coverage on this tab.

Black Hills pays out about 70.0% of its earnings as dividends. A lower payout ratio leaves more room to keep raising the dividend and to absorb a bad year, while a very high ratio can signal a payout under pressure. On this measure the dividend is not currently covered by free cash flow. See the dividend-safety breakdown for the free-cash-flow view, which is often more telling than earnings.