MDU Resources maintains dividend at 13 cents per share

BISMARCK, N.D. - MDU Resources Group, Inc. (NYSE: MDU), an S&P SmallCap 600 company, announced the continuation of its quarterly dividend payment at 13 cents per share. This declaration aligns with the company's previous quarter distribution and supports its objective of a 60% to 70% dividend payout ratio based on regulated energy delivery earnings.

The upcoming dividend is scheduled for payment on January 1, 2025, to shareholders who are on record as of December 12, 2024. MDU Resources, established in 1924, has marked its centennial year, a significant milestone for the energy delivery business.

The company's forward-looking statements indicate a strategic anticipation of future developments, which are subject to a variety of risks and uncertainties. These statements are based on assumptions and factors detailed in the company's filings with the U.S. Securities and Exchange Commission (SEC). MDU Resources emphasizes that changes in these assumptions or factors could lead to different outcomes, and it does not commit to updating these statements following new information or future events.

This dividend announcement is based on information provided in a press release statement from MDU Resources Group, Inc. The company, which is engaged in providing essential products and services through its regulated energy delivery operations, has a longstanding history in the industry, now reaching its 100-year anniversary.

For further details on MDU Resources and its financials, interested parties can visit the company's website or reach out to their Investor Relations Department. The company's commitment to maintaining a steady dividend reflects its ongoing strategy to deliver value to its stockholders while commemorating a century of service in the energy sector.

In other recent news, MDU Resources Group disclosed its third-quarter earnings, indicating a drop in earnings to $64.6 million from $74.9 million in the same period last year. This comes after the company's recent completion of the Everus Construction Group spinoff. However, adjusted income from continuing operations saw an uptick, reaching $65.5 million. Notably, MDU Resources revised its full-year earnings guidance for regulated energy delivery upward, and reported record earnings in its pipeline business due to increased transportation volumes and service rates.

In addition, the company announced plans for a new data center and increased service agreements for existing data centers. Operational and maintenance expenses have risen, primarily due to higher payroll and materials costs. MDU Resources also completed a strategic pipeline acquisition expected to generate $3 million in annual earnings. The company anticipates 1% to 2% annual customer growth and projects long-term EPS growth at 6% to 8%, with a target dividend payout ratio of 60% to 70%.

Despite the decrease in third-quarter earnings, the utility segment and pipeline business both reported increases in earnings. The pipeline business saw a 27% increase in earnings year-over-year. MDU Resources remains optimistic about future growth, focusing on organic growth and strategic acquisitions, particularly in the midstream sector. The company's guidance for 2025 will be provided in February 2025.

InvestingPro Insights

MDU Resources Group's recent dividend announcement aligns with its impressive track record of maintaining dividend payments for 54 consecutive years, as highlighted by an InvestingPro Tip. This consistency underscores the company's commitment to shareholder value, particularly as it celebrates its centennial year.

The company's financial health appears robust, with a P/E ratio of 9.26, indicating that it's trading at a relatively low earnings multiple. This valuation metric, coupled with the InvestingPro Tip that MDU is trading at a low P/E ratio relative to near-term earnings growth, suggests potential value for investors.

MDU's strong recent performance is evident in its market returns. The company has seen a remarkable 79.62% price total return over the past year, and a 36.98% return in just the last three months. These figures align with the InvestingPro Tips noting strong returns over various time frames and that the stock is trading near its 52-week high.

While the company faces challenges, such as an anticipated sales decline in the current year according to analysts, MDU's financial position remains solid. The dividend yield stands at 2.85%, and the company's liquid assets exceed short-term obligations, providing a buffer against potential headwinds.

For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for MDU Resources Group, providing deeper insights into the company's financial health and market position.

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