3.71% Dividend Yield, 55 Years of Dividend Hikes – A Resilient Utility Powering Growth Across the Midwest and Mountain States
Balancing Tradition and Innovation: How a Utility Powers Up with Major Transmission Projects and Data Center Growth
This company has built a reputation as a cornerstone of reliable energy in the U.S., serving over a million customers across multiple states with a blend of electric and gas utilities. It stands out for its deep roots in the energy sector, a diversified portfolio spanning generation, transmission, and distribution, and a track record of steady growth through strategic acquisitions and infrastructure investments. The firm is actively expanding its footprint, integrating clean energy projects, and partnering with major tech companies to meet surging demand from data centers and industrial clients. Its focus on operational excellence, regulatory adaptability, and sustainable growth has cemented its reputation as a resilient and forward-looking player in the utility industry.
Black Hills (BKH)
Financial Score: 81 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.Black Hills is a U.S.-based energy company operating through its electric and gas utilities segments. The company serves approximately 1.35 million customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Black Hills provides electricity, natural gas, and related services to residential, commercial, industrial, and municipal consumers. The company has a long history of strategic growth, including acquisitions in coal, oil, and gas, and is known for its commitment to safety, reliability, and customer service.
Dividend Powerhouse
Black Hills pays an annual dividend of $2.70, yielding 3.71%. The company has increased its dividend for 55 consecutive years, making it one of the longest streaks in the utility sector. The payout ratio is 68.18%, indicating a balanced approach to rewarding shareholders while reinvesting in infrastructure and growth. Over the past five years, the dividend has grown by 25%, reflecting steady earnings and disciplined capital allocation. This long history of consistent payouts is supported by the company’s diversified operations, stable cash flows, and strong regulatory relationships.
Business & Financials: The Numbers That Matter
For Q3 2025, Black Hills reported revenue of $461 million, net income of $121 million, operating income of $154 million, and EPS (GAAP) of $0.42 . These figures show continued growth compared to the previous year, with revenue up 9.2% and EPS up 6.1%. The company’s financial results are supported by increased customer demand and ongoing capital investments in transmission, generation, and distribution infrastructure .
Growth Engine: Expanding Reach and Recurring Revenue
Black Hills’ growth is driven by several key initiatives. The company’s customer base has expanded significantly, with over 1.35 million utility customers across its service territories. The firm is investing $4.7 billion in capital projects from 2025 to 2029, with $1 billion allocated for 2025 alone, focusing on transmission, generation, and distribution upgrades. A major catalyst for growth is the booming demand from data centers, with the company’s pipeline exceeding 1 gigawatt and plans to serve 500 MW by 2029. Black Hills is also advancing its Colorado Clean Energy Plan, aiming to add 400 MW of clean energy resources by 2029, including utility-owned solar and battery storage projects.
Fun Fact: The Name Behind the Brand
Black Hills was founded in 1941 and has a rich history of growth and innovation. The company’s first major acquisition was the Wyodak Coal Company in 1954, which diversified its interests into coal mining and oil and gas production. Over the years, Black Hills has expanded its operations across multiple states, becoming a leader in the U.S. energy sector. Today, the company is known for its commitment to sustainability and its pioneering work in clean energy integration and carbon sequestration.
Final Take
Black Hills’ dividend metrics are strong: a 3.71% yield, 55 years of consecutive dividend growth, and a payout ratio of 68.18%. The company’s financials remain robust, with Q3 2025 revenue of $461 million and EPS of $0.42. Black Hills continues to expand through new customers, strategic infrastructure investments, and a focus on clean energy. The Financial Score from Beatmarket is 81, indicating strong reliability but not the highest tier—companies with scores above 90 are considered the most secure for dividend safety.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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