Back to top

Image: Bigstock

Here's Why You Should Add Black Hills (BKH) In Your Portfolio

Read MoreHide Full Article

Black Hills Corporation’s (BKH - Free Report) systematic investments and focus on clean energy development will boost its performance.

Let’s take a look at the factors that are driving this Zacks Rank #2 (Buy) utility company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance & Long-Term Growth

The company’s shares have gained 14% in the past 12 months compared with the industry’s rise of 6.7%.



The company’s long-term (three to five years) earnings growth is pegged at 4.27%.

Systematic Investments

The company is investing systematically on its electric and natural gas utilities. Its capital expenditure plan for the next five years is focused primarily on projects and initiatives that maintain safety and reliability as well as foster customer growth. It expects to spend $2.9 billion capital through 2019-2023 time period.

Estimate Revision

Earnings estimates for Black Hills have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings per share has moved up 0.8% and 0.3% to $3.47 and $3.71, respectively, during the said period.

Dividend Yield

The company has been paying out dividend to its shareholders on a continuous basis. It has increased dividend for 49 consecutive years. The company’s targeted annual payout ratio is 50-60% of earnings. Currently, Black Hills has a dividend yield of 2.81% compared with the Zacks S&P 500 composite’s 1.8%.

Other Stocks to Consider

Some other top-ranked stocks from the same industry are FirstEnergy Corporation (FE - Free Report) , Edison International (EIX - Free Report) and The AES Corporation (AES - Free Report) . All the three stocks hold a Zacks Rank #2 (Buy).

Long-term earnings growth of FirstEnergy, Edison International and The AES Corporation is pegged at 6%, 5.27% and 8.49%, respectively.

FirstEnergy, Edison International and The AES Corporation delivered an average positive earnings surprise of 2.87%, 0.09% and 4.68% in the last four quarters, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Published in