NorthWestern Corp. : NWE-US: Dividend Analysis : December 15th, 2017 (record date) : By the numbers : December 19, 2017

Our analysis is based on comparing NorthWestern Corp. with the following peers – MDU Resources Group, Inc., PG&E Corporation, Avista Corporation, NiSource Inc, PNM Resources, Inc., Exelon Corporation, IDACORP, Inc., CenterPoint Energy, Inc., Black Hills Corporation and Xcel Energy Inc. (MDU-US, PCG-US, AVA-US, NI-US, PNM-US, EXC-US, IDA-US, CNP-US, BKH-US and XEL-US).

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), NWE-US paid a medium quality dividend, which represents a yield of 3.41% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were medium quality and 2 were low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), NWE-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.33x), investing cash flow (coverage of -2.82x), issuance cash flow (coverage of 0.52x) and twelve-month prior cash (coverage of 0.12x), for a total dividend coverage of 1.15x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 3.83 3.14 2.45 3.45 3.48 3.45
Dividend Payout (%) 55.64 61.79 53.51 60.57 59 62.51

A complete list of metrics and analysis is available on the company page.

Company Profile

NorthWestern Corp. engages in generating and distributing electricity and natural gas. It operates through the following segments: Electric Operations, Natural Gas Operations, and All Other. The Electric Operations segment includes generation, transmission, and distribution of electric utility business as a vertically integrated generation transmission and distribution utility in Montana and South Dakota. The Natural Gas Operations segment includes the production, storage, transmission, and distribution of natural gas. The All Other segment consists of unallocated corporate costs. The company was founded in November 1923 and is headquartered in Sioux Falls, SD.

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