MDU Resources Boosts Shareholder Value Through 7.7% Dividend Hike

Core Viewpoint - MDU Resources has announced a 7.7% increase in its quarterly dividend rate, raising it to 14 cents per share, reflecting the company's commitment to providing reliable long-term value to its investors [1][11]. Dividend Increase - The new annualized dividend is now 56 cents per share, up from 52 cents, with a current dividend yield of 3.16%, significantly higher than the Zacks S&P 500 composite average of 1.15% [2][11]. Historical Performance - MDU Resources has maintained uninterrupted dividend payments for 87 years, showcasing its reliability and dedication to shareholder returns [3][11]. Growth Prospects - The company anticipates long-term earnings per share growth of 6-8% and expects to see 1-2% customer growth annually in its electric and natural gas segments through 2026 [4][5]. Capital Expenditures - MDU Resources plans to invest $3.06 billion from 2025 to 2029 to enhance the reliability of its services and accommodate a growing customer base [5]. Data Center Opportunities - MDU has secured electric service agreements for 580 megawatts (MW) of data center load, with 180 MW currently online and an additional 100 MW expected to come online later this year [6]. Industry Context - The utility sector is characterized by stable operations and earnings, allowing companies like MDU to reward shareholders with regular dividends. Other companies in the sector, such as Chesapeake Utilities, The Southern Company, and PPL Corporation, have also recently increased their dividend rates [7].