BOISE, Idaho, Sept. 20, 2012 /PRNewswire/ -- IDACORP, Inc. (NYSE: IDA) announced today that its Board of Directors approved an increase in the regular quarterly cash dividend on IDACORP's common stock of 15.2 percent to $0.38 per share. At the new rate, the indicated dividend on an annual basis is $1.52 per share. The quarterly dividend is payable November 30, 2012 to IDACORP shareholders of record on November 5, 2012.
IDACORP's Board of Directors previously voted to increase the quarterly dividend by $0.03 per share in January 2012, bringing the cumulative increase in the quarterly dividend during 2012 to 26.7 percent. "Today's decision to increase the cash dividend a second time in 2012 moves the dividend payout ratio considerably closer to the Board of Director's long-term target payout ratio of between 50 and 60 percent of sustainable IDACORP earnings," stated LaMont Keen, IDACORP President and Chief Executive Officer. "Today's increase reflects the company's commitment to delivering competitive total returns to its shareholders," added Keen. "To that end, based on IDACORP's current estimates for earnings and cash flow and assuming IDACORP meets those estimates, IDACORP's management anticipates recommending to the Board of Directors an additional increase to the quarterly dividend in September 2013 of at least ten percent, furthering the company's goal of continued progress toward achieving the target dividend payout ratio range," added Keen.
The declaration of dividend payments and the approval of management's recommendations are at the discretion of the Board of Directors. In determining future dividend actions, the Board of Directors will continue to take into account factors such as current and projected capital requirements, the company's liquidity position and earnings, the competitiveness of the dividend yield, business cycles, credit rating impacts, legal requirements, long-term sustainability, and other factors.