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Avista Corporation (AVA) Increases Annual Dividend to $1.97 Per Share

Avista Corporation (NYSE:AVA) is among the 11 Most Undervalued Utility Stocks to Buy Now.

On February 25, Avista Corporation (NYSE:AVA) raised its quarterly dividend to $0.4925 per share from $0.49, increasing the annual dividend to $1.97 per share. The company has increased its dividend for 24 consecutive years, delivering compound annual growth exceeding 5% and targeting a 60%–70% payout ratio.

That same day, Avista Corporation (NYSE:AVA) reported Q4 2025 results and issued 2026 non-GAAP utility EPS guidance of $2.52–$2.72 per diluted share. The outlook incorporates a one-time $0.12 headwind from a departing large customer and an estimated $0.10 negative midpoint impact from the energy recovery mechanism, which shares 90% of cost variances with customers. Management expects 2026 utility ROE in the low-to-mid 8% range and reiterated a longer-term ROE target of approximately 9% excluding ER impacts, with structural regulatory lag estimated at roughly 60 basis points. The company reaffirmed a 4%–6% long-term EPS CAGR target.

Avista Corporation (NYSE:AVA)’s CapEx totaled $553 million in 2025 and is projected at $585 million in 2026, with $3.4 billion planned from 2026–2030, representing approximately 5% base capital CAGR. An incremental potential of $350 million tied to the integration of a new large customer (125 MW initially ramping to 500 MW by 2030) could increase capital growth to roughly 12%. Funding plans include approximately $230 million of long-term debt and up to $90 million of common equity in 2026, alongside potential monetization of $148 million in nonregulated equity interests.

Founded in 1889 and headquartered in Spokane, Washington, Avista Corporation (NYSE:AVA) is among the most undervalued utility stocks to buy now. The company generates and transmits electricity and distributes natural gas to residential, commercial, and industrial customers.

While we acknowledge the potential of AVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AVA and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 11 Best Pot Stocks to Buy According to Hedge Funds and 11 Best Low Priced Growth Stocks to Buy Right Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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