With an annual dividend yield of 3.79%, Black Hills Corporation (NYSE:BKH) is among the 10 Best High-Yield Dividend Growth Stocks to Buy Right Now.
On April 15, BMO Capital analyst Edward DeArias raised the firm’s price recommendation on Black Hills Corporation (NYSE:BKH) to $91 from $84. He reiterated an outperform rating on the stock. The move followed a jump in shares following reports that Microsoft (MSFT) is purchasing land to build a data center that would be staffed by the company. The analyst said that, over time, this opportunity, along with continued hyperscaler interest in the state, could extend the Black Hills’ growth trajectory.
The note also noted that the stock’s current discount to its peers reflects concerns about management’s execution of its plan, despite a strong balance sheet and recovery mechanisms already in place. Potential new large load announcements and capital plan updates could also play a role going forward.
Black Hills Corporation (NYSE:BKH) operates as a utility company focused on serving customers in multiple regions. It provides natural gas and electric services to approximately 1.35 million customers in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. Its business is organized into the Electricity Utilities and Gas Utilities segments.
While we recognize BKH’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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