• Dividend Brief
  • Posts
  • The Power Provider That Has Rewarded Shareholders Through Every Cycle

The Power Provider That Has Rewarded Shareholders Through Every Cycle

This regulated utility has raised its dividend for decades while steadily expanding its infrastructure base. For income investors seeking durability, the case is built on reliability, not hype.

Author

Noah Zelvis
February 27, 2026

Markets chase momentum. Infrastructure compounds.

This utility has spent decades quietly delivering essential energy, expanding its asset base, and rewarding shareholders through every economic environment. Could it light up your portfolio?

In Development (Sponsored)

A major energy breakthrough is unfolding — and it’s happening faster than most realize.

An MIT-trained scientist has unlocked a virtually inexhaustible energy source, now drawing attention from the Trump administration.

According to the U.S. Department of Energy, it could power the world for billions of years.

That’s why big techs are racing to get involved.

Once operational, the fuel itself costs nothing.

Which is why early positioning — even small — could matter more than people expect.

Electricity is one of those things most people never think about until it is gone. The lights turn on.

The heat kicks in. Businesses open their doors every morning without questioning what keeps everything running.

Behind that quiet reliability lies a regulated utility network designed to do one job well: deliver essential energy consistently and safely through every economic cycle.

That is the quiet appeal of Black Hills Corporation (NYSE: BKH). This is not a flashy growth story ripe with uncertainty.

It is a capital-intensive infrastructure business serving millions across the Midwest and Mountain West, operating under regulated frameworks that prioritize stability and long-term investment.

For income-focused investors, that combination of essential service, visible cash flow, and a steadily rising dividend creates something rare in volatile markets: predictability.

Never Miss a Stock Recommendation Again!

We now send our dividend picks right to your phone via text, so you’ll get the same actionable moves without having to open your inbox.

Built on regulated foundations

At its core, Black Hills Corporation is a fully regulated electric and natural gas utility serving customers across eight states in the Midwest and Mountain West.

That matters. Regulated utilities operate under state-approved rate structures that allow them to earn a defined return on invested capital. It is not explosive growth, but it is visible, structured, and designed to reward long-term infrastructure investment.

The engine here is rate-based expansion. Black Hills continues to invest billions into grid modernization, generation upgrades, renewable integration, and system reliability.

Every dollar deployed into approved projects increases the asset base on which the company earns a regulated return.

Over time, that creates a steady upward slope in earnings power, assuming constructive regulatory relationships remain intact.

Market Education (Sponsored)

For decades, Wall Street insiders have secured the biggest IPO gains before the public ever gets a shot.

Now, one economist says everyday investors may have a rare window to position ahead of a potential $1.5 trillion SpaceX offering.

See how this strategy works by clicking here - and what you should know before the next major IPO announcement.

Diversification across state lines

Geographically, the service territories tend to be less volatile than large coastal markets.

Population growth in parts of Colorado and surrounding regions provides a modest tailwind, while the broader footprint offers diversification across multiple regulatory bodies. It is not dependent on a single state commission or a single economic engine.

Operationally, the business is split between electric utilities and natural gas distribution. That dual exposure adds resilience.

Electric demand continues to benefit from electrification trends and commercial growth, while natural gas remains a key heating and industrial fuel source in colder regions. Together, they form a balanced portfolio of essential services.

Action: Investing in BKH isn’t about chasing headlines. It is about owning the infrastructure that keeps entire regions running and getting paid consistently for doing so.

If you’re seeking stability with forward momentum, this is the kind of stock you build around. The regulated model provides earnings visibility. The multi-year capital investment plan expands the rate base. And that expanding asset base supports future dividend growth. This is not static income. It is income designed to growth.

Initiating a position during broader market volatility or incremental pullbacks can lock in a stronger yield and enhance long-term compounding. In a market obsessed with speed, this is about strength.

Free Tonight (Sponsored)

From thousands of stocks, only five stood out as having the best chance to gain +100% or more in the months ahead.

A newly released 5 Stocks Set to Double special report reveals all five tickers — free for a limited time.

While future results can’t be guaranteed, previous editions of this report delivered gains of +175%, +498%, and even +673%¹.

The newest picks could follow a similar path.

This free opportunity expires at MIDNIGHT TONIGHT.

Get the free report here

*This free resource is being sent by Zacks. We identify investment resources you may choose to use in making your own decisions. Use of this resource is subject to the Zacks Terms of Service.

*Past performance is no guarantee of future results. Investing involves risk. This material does not constitute investment, legal, accounting, or tax advice. Zacks Investment Research is not a licensed dealer, broker, or investment adviser.

The earnings engine keeps turning

The real story from Q4 earnings isn’t about earnings. It’s about control.

Full-year adjusted earnings came in at $4.10 per share, landing right in the middle of guidance and up year over year. That might not sound dramatic. For a regulated utility, that is exactly the point.

This is a business that plans years in advance, invests billions into infrastructure, and then steadily converts those investments into predictable returns. Hitting guidance is not luck. It is execution.

What matters more is what comes next. Management guided 2026 adjusted earnings to a range that implies mid-single-digit growth at the midpoint.

That aligns with its long-term 4-6% annual growth target. In other words, the earnings engine is still climbing at a measured, repeatable pace.

Poll: What’s the weirdest thing people routinely finance?

Login or Subscribe to participate in polls.

Income with institutional memory

Black Hills Corporation currently pays a quarterly dividend of $0.70 per share, yielding roughly 3.82%. That alone is attractive in today's market. But the real story is not the yield. It is the history.

Black Hills has increased its dividend for 56 consecutive years. That places it among an elite group of income stocks with multi-decade records of consistency. Think about what that means.

This company has raised its payout through oil shocks, recessions, inflation spikes, financial crises, and a global pandemic. Different economic cycles. Different regulatory environments. Same commitment to shareholders.

Action: Black Hills Corporation is the kind of stock you buy with intention.

A 56-year dividend growth streak is not a trade. It is a long-term partnership. At a 3.82% yield, you’re being paid to own regulated infrastructure with visible earnings growth and a defined capital plan. That combination is powerful when reinvested over time.

For income-focused investors, this is a buy on weakness and a steady accumulator during periods of rate-driven volatility. Utilities often dip when Treasury yields rise, even though their underlying demand remains unchanged. Those pullbacks can meaningfully improve yield on cost.

For retirees and conservative portfolios, this fits as a core holding. The goal here is not short-term upside. It is dependable cash flow, annual raises, and compounding that works quietly in the background.

Steady does not mean risk-free

Black Hills Corporation operates in a capital-intensive industry where interest rates matter.

Higher borrowing costs can compress returns and make fixed income alternatives more attractive, which can weigh on valuation even if operations remain solid.

Regulatory relationships are another variable. The business model depends on constructive rate outcomes that allow a fair return on invested capital. Delays, political pressure on customer bills, or unfavorable rulings could slow earnings growth.

The bottom line

This is a stock built for endurance. A regulated model, steady rate base expansion, and a dividend culture that spans generations create a powerful combination for long-term income investors.

This is the kind of stock that rewards patience, especially when reinvested and allowed to compound quietly over time.

In markets that swing between fear and euphoria, owning essential infrastructure with a proven commitment to shareholders can be a strategic advantage.

That’s all for today’s edition of the Dividend Brief.

Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!

—Noah Zelvis
DividendBrief.com