Idacorp (IDA) Passes Through 3% Yield Mark

Idacorp Inc (IDA) shares traded on Friday with a yield above 3% based on its quarterly dividend of $3.44 annualized, reaching a low of $114.33. The article highlights the importance of dividends in stock market returns, noting that dividend income can significantly impact total return even when share prices remain relatively flat, making a yield above 3% considerably attractive if sustainable. Investors are advised to review Idacorp's dividend history to assess the likelihood of continued dividend payments.

Analysis

Idacorp Inc. (IDA) recently offered a dividend yield exceeding 3%, based on an annualized $3.44 quarterly payout, with its shares trading as low as $114.33. The significance of this yield is highlighted by the broader market context where dividends substantially impact total returns; for instance, the iShares Russell 3000 ETF (IWV) saw a 0.6% share price decline from May 2000 to May 2012, yet dividends transformed this into a 13.15% total return. Consequently, a sustainable yield above 3% from a Russell 3000 constituent like Idacorp is presented as attractive. However, the article prudently cautions that dividend consistency relies on ongoing profitability, necessitating a review of IDA's dividend history to assess the likelihood of future payments at current levels. The moderately positive sentiment for IDA, with a score of 0.4, reflects this potential income opportunity.

Key Decisions for Investors

• Investors should assess Idacorp's dividend payment history and underlying financial stability to determine the sustainability of its current yield above 3%.
• Consider Idacorp for income-focused portfolios if its dividend sustainability is confirmed, particularly given its status as a Russell 3000 company and the appeal of a 3%+ yield.