Avista Raises Annual Dividend to $1.97 and Sets $2.52–$2.72 EPS Guidance
Avista Corporation raised its quarterly dividend to $0.4925 from $0.49, lifting the annual payout to $1.97 after 24 straight years of increases and targeting a 60–70% payout ratio. It set 2026 utility EPS guidance at $2.52–$2.72 per share while projecting ROE in the low-to-mid 8% range.
1. Dividend Increase and Payout Targets
On February 25, Avista Corporation raised its quarterly dividend to $0.4925 per share from $0.49, increasing the annual dividend to $1.97. This marks the 24th consecutive year of dividend growth, with compound annual growth exceeding 5% and a target payout ratio of 60%–70%.
2. 2026 EPS Guidance and ROE Outlook
Alongside its dividend announcement, the company reported Q4 2025 results and issued 2026 non-GAAP utility EPS guidance of $2.52–$2.72 per share. The outlook includes a one-time $0.12 headwind from a departing customer and a $0.10 estimated negative impact from the energy recovery mechanism, with 2026 utility ROE expected in the low-to-mid 8% range and a longer-term ROE target of roughly 9% excluding recovery impacts, reaffirming a 4%–6% long-term EPS CAGR.
3. Capital Expenditure and Funding Plans
Avista’s capital expenditures reached $553 million in 2025 and are projected at $585 million in 2026, with $3.4 billion planned from 2026–2030 for a base capital CAGR of about 5%. An incremental $350 million tied to a new large customer could raise capital growth to 12%, funded by approximately $230 million of long-term debt, up to $90 million of common equity, and potential monetization of $148 million in nonregulated equity interests.