Utility shareholders informed about federal tax cut benefits
Shareholders of Otter Tail Corporation were informed March 19 that customers of Otter Tail Power Company, including those in Otter Tail County, will likely see savings when they receive future bill statements.
Those savings will likely reflect the federal tax cuts enacted earlier this year for both corporations and individuals.
Comments came during a meeting of Minnesota Utility Investors (MUI) held at the American Legion in Fergus Falls.
MUI is a statewide grassroots organization established in 1990 to represent the interests of individuals and business investors owning shares in utility companies in Minnesota.
Among them are, in addition to Fergus Falls-based Otter Tail Corporation, Twin Cities-based Xcel Energy and Duluth-based Minnesota Power.
MUI's principal objective is to enhance the voice and impact of utility shareholders in the development of federal, regional and state legislative and regulatory policy.
Shareholders learned that Otter Tail Corporation stock, as of March 19, was selling at $41.90 per share. The annual dividend on a share of stock is $1.34.
Earlier this year the board of directors increased the Otter Tail Corporation dividend six cents more than the 2017 rate.
The 4.7 percent increase, which is higher than Otter Tail's historic dividend growth, according to board members, is a result of the positive impact to earnings from the federal tax cuts and jobs act.
Otter Tail shareholders can receive dividends on a quarterly basis or reinvest all of their dividends to purchase additional shares of common stock.
Customers of Otter Tail Power Company in Otter Tail County can become shareholders by making an individual investment through the customer stock purchase plan.
More shares can be purchased by adding $10 or more any given month when paying a monthly electric service bill.