You probably don’t think about Fergus Falls, Minnesota, when you’re looking for a stock that moves the needle. Honestly, most people don't. But if you’ve been watching Otter Tail Power stock lately, you’ve noticed something weird is happening.
While the rest of the market is chasing the next AI breakthrough or crypto moonshot, this "boring" utility company—officially known as Otter Tail Corporation (OTTR)—just hit a fresh 52-week high of $86.77 in early January 2026.
It’s a conglomerate. It’s a power company. It’s a plastic pipe manufacturer.
Wait, what?
The 88-Year Streak That Just Got a 10% Bump
Most companies struggle to keep their dividends consistent for a decade. Otter Tail just approved its 88th consecutive year of paying dividends. That is not a typo. They’ve been cutting checks to shareholders since the 1930s.
On January 8, 2026, the Board of Directors announced a 10% hike to the quarterly dividend, bringing it to $0.5775 per share. If you’re holding the stock, that’s an annual payout of $2.31.
CEO Chuck MacFarlane basically said the company is in a position of "financial strength." He’s not just blowing smoke. This is the second year in a row they’ve handed out a double-digit percentage increase.
What Most People Get Wrong About Otter Tail Power Stock
If you look at the ticker, you might think you’re just buying a regulated utility. You’re not.
Otter Tail is a bit of a hybrid. About 40% to 50% of its earnings typically come from the "Electric" segment—the part that keeps the lights on in Minnesota and the Dakotas. But the other half? That’s where things get interesting (and volatile).
They own a massive plastics business (TNH) that makes PVC pipes.
During the post-pandemic years, the plastics segment printed money. PVC prices skyrocketed, and Otter Tail’s margins were, frankly, insane. Now, in early 2026, those margins are finally starting to "normalize."
Some analysts are worried. They see earnings per share (EPS) potentially dropping from the $6.00+ range down toward $4.65 for the 2026 fiscal year. That’s a big cliff. But the market doesn't seem to care yet.
The Minnesota Rate Case Drama
Right now, Otter Tail is in the middle of a massive regulatory fight. On January 1, 2026, interim rates kicked in for Minnesota customers.
- Interim Increase: Roughly 11.3% for most users.
- The "Final" Ask: They want a 17.7% total increase.
- The Reason: They’re ditching coal at the Coyote Station by 2031 and spending $1.4 billion on a "clean energy" transition.
Utilities love to spend money on infrastructure because that’s how they get permission from the government to raise rates. It’s a "guaranteed" return on capital.
Is OTTR Actually Overvalued?
If you talk to the folks at Simply Wall St, they’ll tell you the fair value of the stock is somewhere around $83.00. Since it's trading near $85.00 or $86.00, it looks a bit "expensive" for a utility.
But look at the P/E ratio. It’s sitting at roughly 12.9x. Compare that to the U.S. Electric Utility average, which usually hovers closer to 19x or 20x.
You’re getting a discount because of the manufacturing side. Investors hate uncertainty, and PVC pipe prices are the definition of uncertain. It’s a cyclical business tacked onto a stable utility.
New Blood on the Board
Management isn't sitting still. On New Year’s Day 2026, two heavy hitters joined the board: Chris Clark and Steve Rasche.
Clark is the former President of Xcel Energy’s regional operations. He knows how to navigate the Minnesota Public Utilities Commission (PUC) better than almost anyone. If you're betting on the stock, you're betting on guys like him to win the rate case.
Why This Matters for Your Portfolio
Let's be real. Otter Tail Power stock isn't going to 10x overnight. It's a "sleep-well-at-night" play with a kicker.
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The "kicker" is the manufacturing segment. If the housing market stays resilient and infrastructure spending remains high, those PVC pipes will keep padding the bottom line while the utility side provides the floor.
The 52-week range has been between $71.79 and $86.48. We are currently hugging the top of that range.
Actionable Insights for Investors
If you’re looking at jumping in now, keep these specific triggers in mind:
- Watch the February 17, 2026 Earnings Call: This is where the 2026 guidance will be finalized. If they forecast EPS significantly higher than the current $4.65 consensus, the stock could break $90.
- Monitor PVC Pricing: If construction slows down, the manufacturing segment will drag on the stock, regardless of how many windmills they build in North Dakota.
- The Dividend Record Date: If you want that new $0.5775 payout, you need to be a shareholder of record by February 13, 2026.
- Rate Case Updates: Any news from the Minnesota PUC regarding the 17.7% request will move the needle. Interim rates are good, but final approval is the goal.
This company has survived the Great Depression, multiple world wars, and the 2008 crash without missing a dividend. It’s a weird, hybrid beast that shouldn't work on paper, but somehow does. Just don't expect it to be a smooth ride if the plastics market gets bumpy.