BOISE, Idaho, Nov. 21, 2019 /PRNewswire/ -- IDACORP, Inc. (NYSE: IDA) announced today that it has adopted a new dividend policy that provides for a target long-term dividend payout ratio of between 60 and 70% of sustainable IDACORP earnings. This is the first time the company has changed the dividend policy for the long-term target dividend payout ratio since 2011, when it established a target long-term dividend payout ratio of between 50 and 60% of sustainable IDACORP earnings.
"The increase to the payout range recognizes the importance our shareholders place on the dividend when considering the overall value proposition," said Darrel Anderson, IDACORP's President and Chief Executive Officer. "We believe the updated target payout ratio aligns with IDACORP's desire for sustained upward growth in the quarterly dividend. We plan to recommend to the Board of Directors future annual dividend increases of 5% or more as we now target this new payout range."
Actual declaration of dividend payments and the approval of management's recommendations are at the discretion of IDACORP's Board of Directors. In determining future dividend actions, the board will continue to consider factors such as current and projected capital requirements, the company's liquidity position and earnings, the competitiveness of the dividend yield, business cycles, credit rating impacts, legal requirements, long-term sustainability, and other factors. The fourth quarter 2019 dividend declared on Oct. 17, 2019, is $0.67 per share, payable on Dec. 2, 2019, for shareholders of record as of Nov. 5, 2019.
Background Information
IDACORP, Inc. (NYSE: IDA), Boise, Idaho-based and formed in 1998, is a holding company comprised of Idaho Power, a regulated electric utility; IDACORP Financial, a holder of affordable housing projects and other real estate investments; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. Idaho Power began operations in 1916 and employs approximately 2,000 people to serve a 24,000-square-mile service area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its generation portfolio, Idaho Power's more than 560,000 residential, business, and agricultural customers pay some of the nation's lowest prices for electricity. To learn more about IDACORP or Idaho Power, visit www.idacorpinc.com or www.idahopower.com.
Forward-Looking Statements
In addition to the historical information contained in this press release, this press release contains (and oral communications made by IDACORP, Inc. and Idaho Power Company may contain) statements, including, without limitation, earnings guidance, that relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, outlook, assumptions, future events, or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "estimates," "expects," "guidance," "intends," "potential," "plans," "predicts," "projects," "targets," "may result," "may continue," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance and involve estimates, assumptions, risks, and uncertainties. Actual results, performance, or outcomes may differ materially from the results discussed in the statements. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements are included in IDACORP, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission, and subsequent reports filed by IDACORP, Inc. and its subsidiary, Idaho Power Company, with the U.S. Securities and Exchange Commission. Dividend declarations and the dividend rate are at the discretion of IDACORP, Inc.'s board of directors and depend on numerous factors, including those described in IDACORP, Inc.'s and Idaho Power Company's filings with the U.S. Securities and Exchange Commission. IDACORP, Inc.'s expectations with respect to dividends may be affected by current and projected capital requirements, IDACORP, Inc.'s liquidity position and earnings, capital expenditures, changes in cash flow, the competitiveness of the dividend yield, the impacts of economic conditions, business cycles, credit rating impacts, legal requirements and changes in laws and regulations, financial performance, long-term financial and operational performance, expectations, and sustainability, changes in tax laws, and other factors. Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. IDACORP, Inc. and Idaho Power Company disclaim any obligation to update publicly any forward-looking information, whether in response to new information, future events, or otherwise, except as required by applicable law.
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SOURCE IDACORP, Inc.